On Jan. 26, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced new amendments to the Cuban Assets Control Regulations (CACR) and Export Administration Regulations (EAR), respectively. These amendments further implement the new direction toward Cuba that President Obama laid out in December 2014. The changes took effect on Jan. 27, when the regulations were published in the Federal Register.
U.S. Treasury Secretary Jacob Lew said, “Today’s amendments to the Cuban Assets Control Regulations build on successive actions over the last year and send a clear message to the world: the United States is committed to empowering and enabling economic advancements for the Cuban people. We have been working to enable the free flow of information between Cubans and Americans and will continue to take the steps necessary to help the Cuban people achieve the political and economic freedom that they deserve.”
U.S. Secretary of Commerce Penny Pritzker said, “Following the first-ever U.S.-Cuba Regulatory Dialogue and my fact-finding trip to Cuba in October, we have been working tirelessly to maximize the beneficial impact of U.S. regulatory changes on the Cuban people. Today’s Commerce rule builds on previous changes by authorizing additional exports including for such purposes as disaster preparedness; education; agricultural production; artistic endeavors; food processing; and public transportation. These regulatory changes will also facilitate exports that will help strengthen civil society in Cuba and enhance communications to, from and among the Cuban people. Looking ahead, we will continue to support greater economic independence and increased prosperity for the Cuban people, as we take another step toward building a more open and mutually beneficial relationship between our two nations.”
These amendments will remove existing restrictions on payment and financing terms for authorized exports and re-exports to Cuba of items other than agricultural items or commodities, and establish a case-by-case licensing policy for exports and re-exports of items to meet the needs of the Cuban people, including those made to Cuban state-owned enterprises. These amendments will further facilitate travel to Cuba for authorized purposes by allowing blocked space, code-sharing and leasing arrangements with Cuban airlines; authorizing additional travel-related and other transactions directly incident to the temporary sojourn of aircraft and vessels; and authorizing additional transactions related to professional meetings and other events, disaster preparedness and response projects and information and informational materials, including transactions incident to professional media or artistic productions in Cuba.
According to a statement from the Auto Care Association’s “Talking Trade” newsletter, earlier amendments to the regulations included the license-free export of items for auto repair shops. As a result, tools, equipment, supplies and instruments for use by private sector auto mechanics can now be exported to Cuba license-free. Prior to publication of this rule, the export or re-export to Cuba of these items generally required a license from the Commerce Department’s BIS.
To see the Treasury regulations, which can be found at 31 Code of Federal Regulations (CFR), part 515, click here.
To see the Commerce regulations, which can be found at 15 CFR part 746, click here.
