[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR740.12]

[Page 269-271]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
  CHAPTER VII--BUREAU OF EXPORT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 740--LICENSE EXCEPTIONS--Table of Contents
 
Sec. 740.12  Gift parcels and humanitarian donations (GFT).

    (a) Gift parcels--(1) Scope. The provisions of paragraph (a) 
authorize exports and reexports of gift parcels by an individual (donor) 
addressed to an individual, or a religious, charitable or educational 
organization (donee) located in any destination for the use of the donee 
or the donee's immediate family (and not for resale). The gift parcel 
must be provided free of charge to the donee. However, payment by the 
donee of any handling charges or of any fees levied by the importing 
country (e.g., import duties, taxes, etc.) is not considered to be a 
cost to the donee for purposes of this definition of ``gift parcel.''

    Note to paragraph (a) of this section:
    A gift parcel, within the context of this paragraph (a), does not 
include multiple parcels exported in a single shipment for delivery to 
individuals residing in a foreign country. Such multiple gift parcels, 
if subject to the General Prohibitions described in Sec. 734.2(b) of the 
EAR, must be licensed by BXA. (See Supplement No. 2 to part 748 of the 
EAR for licensing of multiple gift parcels).

    (2) Commodity, value and other limitations--(i) Eligible 
commodities. The eligible commodities are as follows:
    (A) The commodity must not be controlled for chemical and biological 
weapons (CB), missile technology (MT), national security (NS), or 
nuclear proliferation (NP) (see Commerce Control List, part 774 of the 
EAR); and
    (B) The commodity must be of a type and in quantities normally given 
as gifts between individuals.
    (1) For Cuba, the only commodities that may be included in a gift 
parcel are the following items: 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, and in addition receive-only radio equipment for reception of 
commercial/civil AM/FM and short wave publicly available frequency 
bands, and batteries for such equipment.
    (2) For all other destinations, eligible commodities include all 
items described in paragraph (a)(2)(i)(B)(1) of this section as well as 
all other items normally sent as gifts. Gold bullion, gold taels, and 
gold bars are prohibited as are items intended for resale or reexport.

    Example to paragraph (a) of this section. A watch or piece of 
jewelry is normally sent as a gift. However, multiple watches, either in 
one package or in subsequent shipments, would not quality for such gift 
parcels because the quantity exceeds that normally given between 
individuals. Similarly, a sewing machine or bicycle, within the dollar 
limits of this License Exception, may be an appropriate gift. However, 
subsequent shipments of the same item to the same donee would not be a 
gift normally given between individuals.

    (3) For purposes of paragraph (a)(2)(i)(B) of this section, clothing 
is appropriate, except that export of military wearing apparel to 
Country Group D:1 or E:2 under this License Exception

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is specifically prohibited, regardless of whether all distinctive U.S. 
military insignia, buttons, and other markings are removed.
    (ii) Import requirements. The commodities must be acceptable in type 
and quantity by the recipient country for import as gifts. Commodities 
exceeding the import limits may not be included in gift parcels.
    (iii) Frequency. Except for gift parcels of food to Cuba, not more 
than one gift parcel may be sent from the same donor to the same donee 
in any one calendar month. Parties seeking authorization to exceed this 
limit due to compelling humanitarian concerns (e.g., gifts of medicine 
to relatives) should submit a license application (BXA-748P) with 
complete justification.
    (iv) Value. The combined total domestic retail value of all 
commodities included in a gift parcel may not exceed $400, except for 
gift parcels to Cuba where the value of non-food items may not exceed 
$200. There is no dollar value limit on food contained in a gift parcel 
to Cuba.
    (3) How to export gift parcels. (i) A gift parcel must be sent 
directly to the donee by the individual donor, or for such donor by a 
commercial or other gift-forwarding service or organization. Each gift 
parcel must show, on the outside wrapper, the name and address of the 
donor, as well as the name and address of the donee, regardless of 
whether sent by the donor or by a forwarding service.
    (ii) Each parcel must have the notation ``GIFT--Export License Not 
Required'' written on the addressee side of the package and the symbol 
``GFT'' written on any required customs declaration.
    (b) Humanitarian donations--(1) Scope. The provisions of paragraph 
(b) authorize exports or reexports by groups or organizations of 
donations to meet basic human needs when those groups or organizations 
have experience in maintaining a verifiable system of distribution that 
ensures delivery to the intended beneficiaries.
    (2) Basic human needs. Basic human needs are defined as those 
requirements essential to individual well-being: health, food, clothing, 
shelter, and education. These needs are considered to extend beyond 
those of an emergency nature and those that meet direct needs for mere 
subsistence.
    (3) Eligible donors. Eligible donors are U.S. charitable 
organizations that have an established record of involvement in donative 
programs and experience in maintaining and verifying a system of 
distribution to ensure delivery of commodities and software to the 
intended beneficiaries. Eligible distribution arrangements may consist 
of any one or more of the following:
    (i) A permanent staff maintained in the recipient country to monitor 
the receipt and distribution of the donations to the intended 
beneficiaries;
    (ii) Periodic spot-checks in the recipient country by members of the 
exporter's staff; or
    (iii) An agreement to utilize the services of a charitable 
organization that has a monitoring system in place.
    (4) Donations. To qualify for export under the provisions of this 
paragraph (b), the items must be provided free of charge to the 
beneficiary. The payment by the beneficiary, however, of normal handling 
charges or fees levied by the importing country (e.g., import duties, 
taxes, etc.) is not considered to be a cost to the beneficiary for 
purposes of this paragraph (b).
    (5) Ineligible commodities and software. The following commodities 
and software are not eligible:
    (i) Commodities and software controlled for national security, 
chemical or biological weapons, and nuclear nonproliferation, missile 
technology or crime control reasons (see Supplement No. 1 to part 774 of 
the EAR);
    (ii) Exports for large-scale projects of the kind associated with 
comprehensive economic growth, such as dams and hydroelectric plants; or
    (iii) Exports to Cuba of medical items excluded by Sec. 746.2(a)(3) 
of the EAR.
    (6) Eligible items. Eligible commodities and software are those 
listed in Supplement No. 2 to part 740.
    (7) Additional recordkeeping requirements. In addition to the 
recordkeeping requirements in part 762 of the EAR, donors must keep 
records containing the following information:

[[Page 271]]

    (i) The donor organization's identity and past experience as an 
exporter of goods to meet basic human needs;
    (ii) Past and current countries to which the donative programs have 
been and are being directed, with particular reference to donative 
programs in embargoed destinations;
    (iii) Types of projects and commodities involved in the donative 
programs;
    (iv) Specific class(es) of beneficiaries of particular donated goods 
intended to be exported under this License Exception; and
    (v) Information concerning the source of funding for the donative 
programs and the projected annual value of exports of humanitarian 
donations.

[61 FR 64282, Dec. 4, 1996. Redesignated at 61 FR 68579, Dec. 30, 1996; 
62 FR 25458, May 9, 1997]