Cuba Regulatory Environment: What are we allowed to do? Daniel Vick Export Compliance Administrator NC State University

Transcription

1 Cuba Regulatory Environment: What are we allowed to do? Daniel Vick Export Compliance Administrator NC State University

2 The Embargo / El Bloqueo Cuban embargo is authorized by six different acts of congress. These acts give the President authority to take action, which is delegated to federal agencies.

3 The Embargo / El Bloqueo Primarily enforced by: Department of the Treasury Office of Foreign Assets Control (OFAC) Department of Commerce Bureau of Industry and Security (BIS)

4 The Embargo / El Bloqueo Embargo is still in effect. All prohibitions on dealings with Cuba remain in Federal Regulations. Complex series of Cuban concessions, Executive Orders, and Congressional approvals needed to fully end the Embargo.

5 The Embargo / El Bloqueo Normalizing relations achieved through Executive Orders, General Licenses, or License Exceptions by regulating agencies. Congress does not need to authorize these. Easily changed or cancelled by new executive actions.

6 What is allowed? [OFAC] General License for Education and Research (31 CFR ) Study abroad sponsored by US institution Non-commercial grad and undergrad academic research Enroll in courses at Cuban institution as long as it counts for credit at US institution Teaching at Cuban institutions (if employed in that role outside of Cuba) Sponsor Cuban scholar to teach or engage in scholarly activity at sponsoring US academic institution Secondary school exchanges Non-commercial academic seminars, conferences, symposia Provide internet based courses Establish joint non-commercial research projects with Cuban universities

7 What is allowed? [OFAC] Transactions necessary and ordinarily incident to publishing (31 CFR ) Permits collaborating on the creation and enhancement of written publications Includes research collaborations with intent to publish results.

8 What is allowed? [OFAC] Travel under 12 authorized categories (31 CFR , other sections referenced therein) Family Visits Official Business of US or Foreign Governments and certain intergovernmental organizations Journalistic activity Professional research or meetings Educational Activities Public Performances, clinics, workshops, athletic and other competitions and exhibitions Support for the Cuban People (NGOs) Activities of private foundations or research or educational institutes (collect information related to Cuba for noncommercial purposes) Export, Import, or transmission of informational materials Humanitarian Projects Religious Activities Transactions authorized by the Dept. of Commerce

9 What is allowed? [OFAC] Regarding travel: An entire group does not qualify for the general license [ ] of this section merely because some members of the group qualify individually. The traveler s schedule of activities may not include free time or recreation in excess of that consistent with a full time schedule. (keep record of activities, no vacations)

10 What is allowed? [OFAC] If traveling under an approved category, the following are allowed: Transactions directly related to the authorized activity. Travel and living expenses Banks are allowed to process authorized payments but may refuse or require extensive efforts on your end. Same for insurance.

11 What is allowed? [BIS] Exports of certain items from US to Cuba for the following purposes: Telecom equipment to improve communication for citizens. Promote independent activity to strengthen civil society. News broadcasting and dissemination.

12 What is allowed? [BIS] Items must be evaluated against BIS s Commerce Control List (CCL). Certain CCL categories may be exported under license exceptions. Other CCL categories will require specific licenses.

13 What is allowed? [BIS] US persons legally traveling to Cuba may carry certain items, software, and equipment Certain CCL categories permitted under license exceptions. All other CCL categories eligible for specific licenses. Items must return with traveler to the US or be consumed or destroyed in Cuba.

14 What is allowed? [BIS] Export of donated items for use in scientific, archaeological, cultural, ecological, educational, historic preservation, or sporting activities. Not to Cuban government. Only certain CCL categories allowed.

15 What can you bring back? Max $400 per traveler (per visit) of Cuban origin goods. No more than $100 worth of tobacco and alcohol.

16 Licenses OFAC and BIS have mechanisms to apply for licenses for activities not otherwise permitted. Some UNC system schools have had success obtaining licenses. Long process, give yourself time.

17 Tips Work closely with your legal / compliance offices. Just because US Government allows an activity does not mean the Cuban Government will. Keep detailed travel records. Be prepared for logistical issues.

18 What s next? No further changes announced by the Obama administration for Both Presidential candidates in favor of opening access to Cuba. Major hurdles remain before embargo can be completely lifted.

19 Questions?