Revised Cuban embargo regulations include significant changes for U.S. exporters
September 8, 2009
World Trade\Interactive
New revisions to the Cuban Assets Control Regulations and the Export Control Regulations that took effect Sept. 3 include significant changes of interest to U.S. exporters. These changes expand the types of business U.S. companies can do in Cuba and should increase the number of personal and business trips to Cuba by Americans.
The amendments are incorporated in final rules issued by the Treasury Department's Office of Foreign Assets Control and the Department of Commerce’s Bureau of Industry and Security. These rules implement changes to the U.S. trade embargo on Cuba that were mandated by Congress earlier this year. Despite these changes, however, the U.S. still imposes a comprehensive embargo on Cuba. The export and re-export of most U.S. products to Cuba remains prohibited, U.S. persons are still barred from engaging in unauthorized travel transactions with Cuba, and U.S. law imposes significant penalties against those that violate the Cuban embargo.
Changes in the regulations affecting U.S. exporters include the following.
Telecommunications. OFAC’s final rule greatly expands the range of authorized commercial telecommunications transactions with Cuba, such as cellular and satellite communications, including payment for such services. The rule also contains a general license that authorizes travel to Cuba if it is related to the commercial export of telecommunications-related items that have been authorized by the DOC.
In addition, the EAR was amended to expand the scope of items eligible for export or re-export licenses to Cuba to include commodities, technology or software necessary to provide efficient and adequate telecommunications links between the U.S. and Cuba, including to provide satellite radio or satellite television services to Cuba.
Sales and Marketing Trips for Medical and Agricultural Products. OFAC’s amended regulations include a general license allowing employees of producers or distributors of medical or agricultural products (including food) to travel to Cuba to engage in the marketing, sales negotiation, accompanied delivery or servicing in Cuba of agricultural commodities, medicine or medical devices eligible under the DOC’s export or re-export licensing policy to Cuba. This is a major change for U.S. exporters of humanitarian products since all previous travel to Cuba had to take place pursuant to a specific license issued by OFAC.
Donated Personal Communications Devices. The BIS rule creates a new license exception Consumer Communications Devices that authorizes exports and re-exports to Cuba of donated personal communications devices such as mobile phone systems, computers and software, satellite receivers and digital cameras. License exception CCD is not valid for products sent to organizations or individuals associated with the Cuban government.
It is important to note that all sales of U.S. telecommunications, agricultural or medical products exported or re-exported to Cuba must be authorized or licensed by BIS. In addition, all travel to Cuba pursuant to these general licenses must be arranged and provided by OFAC authorized providers of air and travel services.
|
|
