cuba sanctions...us embargo dates back to 1961 • september 1961 –congress authorized embargo •...

© 2017 Haynes and Boone, LLP


CUBA SANCTIONS

The Center for American and International Law

June 12, 2017

© 2017 Haynes and Boone, LLP© 2017 Haynes and Boone, LLP

US EMBARGO DATES BACK TO 1961

• September 1961 – Congress Authorized Embargo

• March 1962 - US Embargoed Imports from Cuba

• September 1962 - Embargo Expanded to Include All Cuban Trade

• February 1963 - Following October Cuban Missile Crisis Travel

Restrictions and

• Cuban Assets in the United States Frozen

• Some Travel Restrictions Lapsed During the Carter Administration but

Re-imposed by President Reagan

• Clinton signs Helms Burton in 1996 Following Downing of Brothers to

the Rescue Planes

• October 2000 –Humanitarian Aid and Agricultural Goods and

Medicines Authorized

2


OBAMA ADMINISTRATION INITIATES OPENING

Middle 2013:

Secret Talks Between the United States and Cuba

December 2014:

Announcement of Restoration of Diplomatic Relations

Announcement of Prisoner Releases

Announcement that Some Sanctions Will Be Relaxed

Promise to Review Cuba’s Listing as a State Sponsor

of Terrorism

3


KEY AMENDMENTS TO CUBA SANCTIONS REGULATIONS

January 16, 2015

Travel

12 categories of travel allowed by general license

Use of US credit and debit cards authorized

Note: Authorization for tourism to Cuba will require

legislative action. The TSRA prohibits the Treasury

Secretary from authorizing any tourism-related travel to

Cuba.

Travel and Carrier Services: Travel agents and airlines

authorized to provide services

Insurance: Insurance for travelers to Cuba authorized

4


KEY AMENDMENTS TO CUBA SANCTIONS REGULATIONS (CONT.)

• Telecoms

– Commercial telecoms authorized to link Cuba to third countries

– Telecoms and internet equipment, software, applications, services

authorized

• Financial services

– Depository institutions allowed to open and maintain

correspondent accounts at Cuban banks to process authorized

transactions

– US financial institutions authorized to enroll merchants and

process credit and debit card transactions

• Support for Cuban People: Exports authorized to improve living

conditions of Cuban people and supporting independent economic

activity, strengthening civil society and improving communications,

includes exports of building materials, equipment and tools

5


THE 12 CATEGORIES FOR WHICH TRAVEL TO CUBA IS AUTHORIZED:

1. Family visits

2. Official business of the U.S. government, foreign governments, and certain intergovernmental organizations

3. Journalistic activity

4. Professional research and meetings

5. Educational activities

6. Religious activities

6


THE 12 CATEGORIES FOR WHICH TRAVEL TO CUBA IS AUTHORIZED (CONTINUED):

7. Support for the Cuban people

8. Public performances, clinics, workshops, athletic and other competitions, and exhibitions

9. Humanitarian projects

10. Activities of private foundations or research, or educational institutes

11. Exportation, importation, or transmission of information or information materials

12. Certain authorized export transactions

7


EXPANSIONS IN OTHER U.S. TRADE

New BIS License Exception Support for the Cuban People (“SCP”) that authorizes the export and reexport of certain other items to the Cuban private sector, as follows:

– Building materials, equipment, and tools for use by the private sector to construct or renovate privately owned buildings, such as residences, businesses, places of worship, or buildings for social or recreational use;

– Tools and equipment for private-sector agricultural activities; and

– Goods for use by private-sector entrepreneurs

8



September 21, 2015

Travel

Vessels can travel directly between US and Cuba

without stops in third countries

Aircraft, vessels, and spacecraft can make

sojourns in Cuba (up to 7 days for aircraft)

Telecoms and Internet: US persons can establish a

business presence in Cuba, including setting up a

joint venture with a Cuban entity, to provide telecoms

and internet-based services

9



(CONTINUED)

• Physical Presence and Operations in Cuba:

– US Persons can maintain an office, retail outlet

or warehouse in Cuba if in the following

businesses:

news bureaus, exporters of authorized

goods, mail and parcel transmitters,

telecoms and internet service providers,

carrier and travel service providers

– Cuban nationals may be employed

10



(CONTINUED)

• Legal Services:

– Receipt of payments for legal services provided to

Cuba and Cuban nationals permissible

– US persons can receive and make payments to

Cuban lawyers

• Educational Activities: Academic exchanges and joint

non-commercial academic research authorized

• Humanitarian projects: Expanded to include disaster

relief and historical preservation

11



(CONTINUED)

January 27, 2016

Financing:

Restrictions on payment and financing terms for

authorized exports and reexports relaxed

US depository institutions authorized to provide

financing (e.g., letters of credit) for authorized exports

Travel:

Authorizes trips to Cuba to plan meetings and events

Travel-related transactions authorized for market

research, commercial marketing, contract negotiation,

installation, leasing, etc.

12



(CONTINUED)

US Exports to Cuba:

Commodities and software for human rights

organizations and NGOs

Commodities and software for news bureaus

Telecommunications items

Certain agricultural items

13



(CONTINUED)

March 16, 2016

Travel:

People-to-people educational travel authorized

Banking and financial services:

U-turn payments through US financial system authorized

US banks can process US dollar monetary instruments

presented indirectly by Cuban financial institutions

US banks can open US accounts for Cuban nationals in

Cuba

Physical and Business Presence: Expanded to include

humanitarian projects, private foundations and educational

institutes

14



(CONTINUED)

October 14, 2016

Increased collaboration between US and Cuban medical researchers

Cuban pharmaceuticals to be considered for FDA approval

Vessels that have traded with Cuba may in many cases enter the US

without waiting 180 days

BIS will generally authorize air cargo to transit Cuba

U.S. persons allowed to provide services related to developing,

repairing, maintaining and enhancing certain types of Cuban

infrastructure:

public transportation systems

water and waste management facilities

non-nuclear energy generation

hospitals, public housing and schools

air transportation systems

15



(CONTINUED)

• U.S. persons may enter into contingent contracts for

transactions still prohibited by the regulations and to engage in

activities ordinarily incident to negotiating such contracts.

• Civil aviation safety-related services to Cuba and Cuban

nationals aimed at promoting safety in civil aviation and the

safe operation of commercial aircraft

• Restrictions eased of payments for certain items related to

agriculture

• On-line sale of consumer goods for personal use authorized

• Limits on the value of items for personal use ($400) and on

alcohol and tobacco products ($100) that may be carried in

accompanied baggage by U.S. travelers returning from Cuba

are removed

16



Larry B. PascalPartner

Haynes and Boone, LLP

2323 Victory Avenue

Dallas, Texas 75219

[email protected]

1.214.651.5652

Edward LebowCounsel

Haynes and Boone, LLP

800 17th Street NW, Suite 500

Washington, DC 20006

[email protected]

1.202.654.4514

mailto:[email protected]

mailto:[email protected]


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