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EAR Amended to Implement Cuba’s Removal from List of State Sponsors of Terrorism

Wednesday, July 22, 2015
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule amending the Export Administration Regulations to implement the rescission of Cuba’s designation as a state sponsor of terrorism. Specifically, the rule removes anti-terrorism license requirements from Cuba and eliminates references to Cuba as a state sponsor of terrorism, but maintains pre-existing license requirements for all items subject to the EAR unless authorized by a license exception. The rule also removes Cuba from Country Group E:1 (terrorist supporting countries), which makes Cuba eligible for a general 25% de minimis level and portions of four license exceptions. The State Department rescinded the designation of Cuba as a state sponsor of terrorism on May 29.

BIS notes that Cuba is still subject to a comprehensive embargo and, as specified in section 746.2(a) of the EAR, a license is still required to export or re-export to Cuba any item subject to the EAR unless authorized by a license exception. Only those license exceptions listed in section 746.2(a) may be used to export or re-export to Cuba. The requirements of section 746.2(a) apply to all items subject to the EAR, including EAR99 items and items that are controlled on the Commerce Control List only for anti-terrorism reasons.

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