Commerce Makes EAR Changes to Comply with Cuban Terrorism Removal
The Commerce Department issued a final rule to amend the Export Administration Regulations to implement the State Department’s removal of Cuba as a State Sponsor of Terrorism. The EAR modifications remove the anti-terrorism license requirement for Cuba, but keep in place preexisting license requirements for all EAR-subject items unless those items has a license exception, Commerce said in the rule (here). The rule is effective July 22.
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State formally rescinded the Cuban designation in late May following months of rapprochement (see 1505290025). The two countries announced official plans on July 20 to open embassies in each other’s capitals (here).
The final rule, administered by Commerce’s Bureau of Industry and Security, increases the de minimis level for controlled U.S.-origin content in exports destined for Cuba to 25 percent. That de minimis threshold was previously 10 percent, in accordance with Cuban status in Country Group E:1, the State Sponsors of Terrorism. But exporters aiming to ship items transferred from State control to Commerce control as part of Export Control Reform still don’t have a de minimis option for Cuba-bound goods.
Cuban exports are now eligible for the following four license exceptions: Servicing and Replacement of Parts and Equipment; Governments, International Organizations, International Inspections under the Chemical Weapons Convention and the International Space Station; Baggage; and Aircraft, Vessels and Spacecraft.
(Federal Register 07/22/15)