Treasury, Commerce Back Up Cuba Action with Sweeping Regulatory Changes
The Obama administration unveiled much-anticipated regulatory changes to U.S. trade, financial and travel policy, in final rules from the Treasury Department’s Office of Foreign Assets Control (here) and the Commerce Department’s Bureau of Industry and Security (here) that take effect on Jan. 16. Obama announced the executive action to slash some Cuba trade and travel barriers in December (see 1412170032). The White House praised the Jan. 15 measures as critical to moving beyond a decades-old Cuba policy that has failed to benefit U.S. interests (here).
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OFAC changes to the Cuban Assets Controls Regulations allow the import of $400 of goods for authorized travelers, only $100 of which can be alcohol and tobacco, said a Treasury fact sheet (here). The U.S. policy of “cash in advance” for exports, which has applied to U.S. shipments of agricultural goods, will now change to a policy of “cash before transfer of title to, and control of,” the fact sheet said. The OFAC changes also ease banking restrictions, remittance policy, restrictions on U.S.-company dealings from third-party countries, and a wide range of travel constraints.
BIS revisions to the Export Administration Regulations authorize the Support for the Cuban People license exception in its final rule. The new license exception authorizes exports in the following specific categories, among others, the rule says:
- Building materials, equipment, and tools for use by the private sector to construct or renovate privately-owned buildings, including privately-owned residences, businesses, places of worship and buildings for private sector social or recreational use
- Tools and equipment for private sector agricultural activity
- Tools, equipment, supplies, and instruments for use by private sector entrepreneurs. Note that this provision will, for example, allow the export of such items to private sector entrepreneurs, such as auto mechanics, barbers and hairstylists and restaurateurs
The EAR rule also amends existing License Exception Consumer Communications Devices by eliminating the donation requirement, allowing sales of certain communications items to eligible end users in Cuba, it says. Additionally, it amends License Exception Gift Parcels and Humanitarian Donations (GFT) to authorize exports of multiple gift parcels in a single shipment. Imports of some Cuban entrepreneurial-produced goods will be authorized, and Commerce also is implementing a new policy for the export and reexport approval for the “environmental protection of international air quality, and waters, and coastlines.”
(Federal Register 01/15/16)