New Cuba Rules Expand Exports

New Cuba Rules Expand Exports
Posted by Clif Burns at 7:39 pm on September 10, 2009
Category: Cuba Sanctions

Visit CubaIn my last post on the new Cuba regulations, I hadn't yet seen
the regulations published by the Bureau of Industry and Security ("BIS")
in the Federal Register on September 8 but had only seen press reports
about their supposed contents. Both BIS and the Office of Foreign Assets
Control ("OFAC") issued regulations to implement the White House's
relaxation of parts of the embargo as announced in April of this year.
Both agencies needed to issue regulations because OFAC regulates
payments and provision of services to Cuba while BIS regulates exports
of goods to Cuba.

The new BIS regulations amend existing License Exception GFT which
covers gift parcels and create a new license exception CCD which covers
exports of certain consumer communications devices to Cuba. Although
both license exceptions expand unlicensed exports to Cuba, they differ
in significant ways.

Prior to the amendments, license exception GFT permitted individuals to
send gift packages to members of their immediate family (excluding
designated officials of the Cuban government and the Communist Party) of
food, medicine, medical devices, and certain mobile phones. Packages
were limited in value to $400 for all items other than food As amended,
license exception GFT now covers gift parcels with a value up to $800
for all items other than food. The recipients of these packages no
longer need to be immediate family members of the sender but can be
anyone in Cuba (other than Cuban government and party officials). And
the items in the package can now include clothing, personal hygiene
items, veterinary items, fishing equipment and soap-making equipment.
Significantly the packages can now also include items normally sent as
gifts between individuals.

The new license exception CCD covers consumer communication devices and
specifically lists, among other things, computers and peripherals,
mobile phones, storage media, audio and video players and recorders,
digital cameras and batteries and chargers for these devices. Although
there are some overlaps between license exceptions GFT and CCD, there
are some significant differences. For example, in terms of overlap, many
of the items listed as eligible for exception CCD might also qualify
under GFT as items normally sent as gifts between individuals.

Even if a computer might be exchanged as a gift, three computers would
not normally be such a gift, meaning that multiple computers would not
be eligble under exception GFT but would be eligible under exception
CCD. Additionally, license exception CCD can cover exports from groups
and companies, whereas exception GFT only covers exports by individuals.
Finally, there is no limitation on the value of items sent under
exception CCD. Nor is there a frequency limitation under exception CCD
as opposed to the one parcel per month limitation under exception GFT.
In essence, the only significant restriction under exception CCD, at
least for the specific consumer communications devices enumerated, is
that they can't be sent to Cuban government or Communist Party officials.

ExportLawBlog » New Cuba Rules Expand Exports (10 September 2009)
http://www.exportlawblog.com/archives/555