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U.S. Formally Removes Cuba from the List of State Sponsors of Terrorism, Though Restrictions on Travel and Trade Remain

May 29, 2015

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United States
 
The U.S. government today lifted the designation of Cuba as a state sponsor of terrorism, the next step toward normalizing relations between the two countries. However, longstanding restrictions on travel and investment with Cuba remain in place and will not be lifted without action from Congress.
 
Permitted Travel Activities
 
 
Since January of this year, the U.S. government has permitted a broader range of travel and related activities under a “general license” from the Treasury Department. Though tourist travel to Cuba remains prohibited, visits for the following types of activities are among those that can take place without formal government approval: family visits; professional research and professional meetings; educational, religious or journalistic activities; public performances, clinics, workshops, athletic and other competitions and exhibitions; humanitarian projects; activities of private foundations or research or educational institutes; exportation, importation or transmission of information or information materials; certain export transactions; and official business of the U.S. government, foreign governments and certain intergovernmental organizations. Individuals engaged in permissible travel are permitted to use U.S. credit and debit cards in Cuba.

 
Business Transactions with Cuba
 
 
Also since January, U.S.-owned or controlled entities in a third country are authorized to provide goods and services to a Cuban national who is located outside of Cuba, provided that the transaction does not involve a commercial exportation, directly or indirectly, of goods or services to or from Cuba. An export license from the Commerce Department’s Bureau of Industry and Security (BIS) may still be required, however, if the transaction involves the release of controlled technology to a Cuban national.

The BIS Export Administration Regulations (EAR) authorize certain transactions related to communications to take place without the need for a license. This includes commercial sales and donations of the export and re-export of consumer communications devices (personal computers, mobile phones, televisions, memory devices, recording devices, and consumer software) and exports of items for the establishment and upgrade of communications-related systems and infrastructure. The EAR also permits the export and re-export to Cuba of items to support private economic activity, including building materials, goods for use by private sector entrepreneurs such as auto mechanics, barbers and hairstylists and restaurateurs, and tools and equipment for private sector agricultural activity.

What This Means for Organizations and Individuals

The process of normalizing relations between the United States and Cuba continues, but organizations and individuals must remain aware of existing restrictions on travel and trade between the two countries. Because violation of these rules can have significant consequences – including immigration consequences for non-citizens – any proposed activities with Cuba must be carefully evaluated in advance.

If you have any questions about U.S. regulations concerning Cuba, contact your designated Fragomen professional or the firm’s Export Control Practice Group.
 
© 2015 Fragomen

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