787. Are services related to caching, such as the provision of data storage systems that reduce internet network traffic, authorized by the CACR?
Yes. Section 515.578 authorizes the exportation or reexportation to Cuba of services incident to the exchange of communications over the internet. To the extent data caching services are incident to such exchanges of communications, the provision of such services is authorized. Section 515.578 also authorizes the exportation of services, including business consulting and information technology management services that are related to certain consumer communications devices. For instance, the provision by an internet or telecommunications provider of caching services related to items exported to Cuba pursuant to Commerce License Exception Consumer Communications Devices (CCD) or an individual license issued by Commerce is authorized. For a complete description of what this general license authorizes and the restrictions that apply, see 31 CFR § 515.578. [11-08-2017]
1) The specific basis for this interpretation is important for the purpose of discerning whether it has cross-programmatic application to other GLs.
If this is merely an interpretation of 515.578(a)(1), i.e. that caching constitutes "services incident to the exchange of personal communications over the Internet," then there is no reason why the reasoning shouldn't apply just the same to 541.511(a) (SySR) and 560.540 (ITSR)/Iran GL D-1, since the wording of the first paragraph of each of the three GLs is substantially the same.
The scope of 515.578 is however broader than its analogues in other programs. To the degree that OFAC implies that caching services are permitted in connection with "business consulting and information technology management services," such services are apparently outside the scope of the other GLs altogether, so the caching would be as well.
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