Dan Brecher
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Cuba Sanctions & How They'll Impact U.S. Businesses?
Author: Dan Brecher
Date: February 3, 2015
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In the wake of President Barak Obama’s announced policy shift towards Cuba, several government agencies have begun to amend their regulations to reflect the diplomatic and economic changes.
In regards to the policy shift toward Cuba, below are several significant amendments to the Cuban Assets Control Regulations and the Export Administration Regulations, which may be of particular interest to the business community:
Travel
- Individuals who satisfy one of the 12 categories of authorized travel will no longer need to apply for a license to visit Cuba, subject to certain conditions.
- The per diem rate previously imposed on authorized travelers is eliminated. Authorized travelers will be allowed to engage in transactions ordinarily incident to travel within Cuba, including payment of living expenses and the acquisition in Cuba of goods for personal consumption in the country.
- U.S. travelers are now authorized to use U.S. credit and debit cards in Cuba.
- Travel agents and airlines will be authorized to provide authorized travel and air carrier services without obtaining a specific license.
Financial
- Depository institutions will be permitted to open and maintain correspondent accounts at Cuban financial institutions in order to facilitate the processing of authorized transactions.
- U.S. financial institutions will be authorized to enroll merchants and process credit and debit card transactions for travel-related and other transactions.
- Banking institutions, including U.S.-registered brokers or dealers in securities and U.S.-registered money transmitters, will be permitted to process authorized remittances to Cuba without having to apply for a specific license.
- The regulatory interpretation of “cash in advance” is amended from “cash before shipment” to “cash before transfer of title to, and control of,” the exported items, with the goal of allowing expanded financing of authorized trade with Cuba.
Small Business
- Certain micro-financing projects and entrepreneurial and business training, such as for private business and agricultural operations, will be authorized.
- Commercial imports of certain independent Cuban entrepreneur-produced goods and services, as set forth in a list to be published by the State Department, will be allowed.
All of the regulatory changes took effect in January. Of course, it is still unclear when and if Cuba will be truly “open for business” to U.S. companies. However, given the untapped growth and revenue potential, we will be closely tracking the developments.
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Cuba Sanctions & How They'll Impact U.S. Businesses?
Author: Dan Brecher
In the wake of President Barak Obama’s announced policy shift towards Cuba, several government agencies have begun to amend their regulations to reflect the diplomatic and economic changes.
In regards to the policy shift toward Cuba, below are several significant amendments to the Cuban Assets Control Regulations and the Export Administration Regulations, which may be of particular interest to the business community:
Travel
- Individuals who satisfy one of the 12 categories of authorized travel will no longer need to apply for a license to visit Cuba, subject to certain conditions.
- The per diem rate previously imposed on authorized travelers is eliminated. Authorized travelers will be allowed to engage in transactions ordinarily incident to travel within Cuba, including payment of living expenses and the acquisition in Cuba of goods for personal consumption in the country.
- U.S. travelers are now authorized to use U.S. credit and debit cards in Cuba.
- Travel agents and airlines will be authorized to provide authorized travel and air carrier services without obtaining a specific license.
Financial
- Depository institutions will be permitted to open and maintain correspondent accounts at Cuban financial institutions in order to facilitate the processing of authorized transactions.
- U.S. financial institutions will be authorized to enroll merchants and process credit and debit card transactions for travel-related and other transactions.
- Banking institutions, including U.S.-registered brokers or dealers in securities and U.S.-registered money transmitters, will be permitted to process authorized remittances to Cuba without having to apply for a specific license.
- The regulatory interpretation of “cash in advance” is amended from “cash before shipment” to “cash before transfer of title to, and control of,” the exported items, with the goal of allowing expanded financing of authorized trade with Cuba.
Small Business
- Certain micro-financing projects and entrepreneurial and business training, such as for private business and agricultural operations, will be authorized.
- Commercial imports of certain independent Cuban entrepreneur-produced goods and services, as set forth in a list to be published by the State Department, will be allowed.
All of the regulatory changes took effect in January. Of course, it is still unclear when and if Cuba will be truly “open for business” to U.S. companies. However, given the untapped growth and revenue potential, we will be closely tracking the developments.