Although Embargo Remains In Place, U.S. Government Continues To Expand Allowable Trade With Cuba

Continuing the implementation of President Obama's Cuban policy announced in December 2014, the U.S. Department of the Treasury and Department of Commerce have further revised the Cuban Assets Control Regulations ("CACR") and the Export Administration Regulations ("EAR") respectively. These revisions are effective as of September 21, 2015. Although the comprehensive embargo remains in place, these changes expand allowable activities in the travel, financial services, and telecommunications industries, among others. The following is a summary of some of the key changes.

Travel

The Department of the Treasury's Office of Foreign Assets Control ("OFAC") amended the CACR to allow persons subject to U.S. jurisdiction to provide carrier services to Cuba via vessel without the need for a specific license. 31 C.F.R. § 515.572. Vessel carriers also are authorized to provide lodging services. Unlike many of the other sanctions programs, the Cuba sanctions are jointly administered by the Department of the Treasury and the Department of Commerce. Because of this, the Department of Commerce's Bureau of Industry and Security ("BIS") had to amend many of its own regulations to give effect to the OFAC amendments. For example, BIS has expanded License Exception Aircraft, Vessels, and Spacecraft ("AVS") to allow cargo vessels used to transport authorized items, passenger vessels used to transport authorized travelers and items, and recreational vessels used in connection with OFAC-authorized travel to depart for Cuba and dock in Cuba for up to 14 consecutive days. 15 C.F.R. § 740.15. These amendments begin to open Cuba to service by cruise lines. The travel to Cuba still must be allowed under the other provisions of the CACR, however, meaning U.S. cruise lines cannot provide leisure travel services. In addition, the authorization allows only the transportation of authorized travelers directly between the United States and Cuba and does not permit stops in other countries. Vessel carriers also are required to obtain certifications from each passenger stating the general license category under which he or she is eligible to travel. If a passenger is traveling pursuant to a specific license, the carrier must obtain a copy of that specific license. These certifications and related paperwork must be retained by the carrier for five years. In another expansion of permissible travel to Cuba, a person subject to U.S. jurisdiction may now accompany a close relative...

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