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Cuba Export Restrictions Tightened

Monday, October 21, 2019
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule amending the Export Administration Regulations to further restrict exports and reexports of items to Cuba. These changes are being implemented in an effort to further restrict the Cuban government’s access to items subject to the EAR, thereby supporting the Trump administration’s policy toward the Caribbean island nation.

Specifically, BIS is doing the following:

- amending the Cuba licensing policy in the EAR to establish a general policy of denial for leases of aircraft to Cuban state-owned airlines;

- amending License Exception Aircraft, Vessels and Spacecraft (AVS) to clarify that aircraft and vessels are not eligible for the license exception if they are leased to or chartered by a national of Cuba or a state sponsor of terrorism;

- amending the EAR to establish a general 10 percent de minimis level for Cuba;

- revising License Exception Support for the Cuban People (SCP) to make the Cuban government and communist party ineligible for certain donations;

- removing an authorization for promotional items that generally benefits the Cuban government; and

- clarifying the scope of telecommunications items that the Cuban government may receive without a license.

 For more information, please contact export compliance attorney Kristine Pirnia.

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