Trade knowledge / Exporting to Cuba in the Midst of a Trade Embargo
Date: 2013-08-05
Exporting to Cuba in the Midst of a Trade Embargo
Since the early 1960’s the United States has imposed an aggressive trade embargo on Cuba, but there have been some recent amendments to the Export Administration Regulations (EAR) that will allow a bit more flexibility in exporting some merchandise to the Cuban people.
In accordance with the trade embargo provisions, all items that would be subject to the EAR require a license for export or re-export to Cuba unless a license exception specifically authorizes the transaction to occur.
Along with the age-old trade embargo, the Bureau of Industry and Security administers the provisions of the Cuban Liberty and Democratic Solidarity Act of 1996 (LIBERTAD) and issues general authorization for limited types of transactions that support the goals of U.S. foreign policy as it relates to Cuba.
Earlier this year, President Obama directed the Secretary of the Treasury, the Secretary of Commerce and the Secretary of State to collaborate on actions that could be taken to enhance the free flow of information to and from Cuba, as well as promote contact among Americans here at home and their relatives residing in Cuba as a medium for encouraging positive change within Cuba.
As a result of President Obama’s direction, there have been some amendments to existing license exceptions along with the creation of an entirely new license exception related to the Cuban trade embargo currently in force. License Exception: Gift Parcels and Humanitarian Donations (GFT)
Under the Gift Parcels and Humanitarian Donations license exception the EAR authorized the export and re-export of gift parcels sent by any resident individual within the United States to an individual or a religious, educational or charitable organization for personal use by the recipient or the recipient’s immediate family (i.e. grandparents, parents, siblings, children and grandchildren). However, only one gift parcel per month is permitted to any single household in Cuba.
The following list contains the articles that are eligible under this particular license exception:
food (including vitamins)
medicine
medical supplies (including hospital supplies)
medical equipment (including handicap equipment)
radio equipment for the purpose of receiving AM/FM and shortwave frequency bands
batteries for the above mentioned radio equipment
mobile phones subject to ECCN 5A991 or 5A992 along with software and accessories (i.e. batteries, memory cards and chargers)
As a result of the amendment to this particular license exception the following additional articles are now eligible for exportation:
clothing
personal hygiene items
seeds
veterinary medicines and supplies
fishing equipment and supplies
soap making equipment
any other “non-sensitive” items which would normally be sent as a gift from one individual to another
In addition to the above mentioned articles, the amendment to this license exception requires that the Cuban religious, educational or charitable organizations receiving the gifts are not administered or controlled by the Cuban government. License Exception: Baggage (BAG)
The weight limit of 44 pounds, which has been imposed on the personal baggage of most travelers to Cuba, has been lifted with the amendment to the baggage license exception. All other restrictions imposed under this license exception are in effect and will be strictly imposed. License Exception: Donated Consumer Communications Devices, Computers and Software (CCD)
Prior to the creation of the Consumer Communications Devices license exception, the EAR required an individual validated license in order to export or re-export donated consumer communications devices. Under the Consumer Communications Devices license exception, the export and re-export of consumer communications devices that are necessary to provide adequate and efficient telecommunications services between the United States and Cuba are now authorized.
The Consumer Communications Devices license exception also facilitates the export and re-export of specific commodities and software that are readily available for retail purchase within the United States and are commonly utilized to exchange information and facilitate interpersonal communication. The following list contains the articles that have become eligible under this license exception:
mobile phones (cellular and satellite)
subscriber information module (SIM) cards
personal digital assistants
laptop and desktop computers
laptop and desktop peripherals (i.e. monitors, graphics accelerator cards, data storage devices, keyboards, mice, printers including IEEE 802.15.1 Bluetooth Wireless Personal Area Networking (WPAN), and internet connectivity devices including IEEE 802.11 and IEEE 802.16)
satellite-based television and radio receivers
digital music and video players
personal two-way radios
digital cameras (including memory cards, batteries, chargers and carrying cases)
This license exception also authorizes computer operating systems and software (excluding encryption source code) that allow end-users the capability of word processing, spreadsheet creation, graphic presentation design, relational database development, sending\receiving email, and web browsing.
Why are these changes taking place now? In general, these amendments are being implemented to enable legitimate Cuban citizens to obtain advanced technological devices that would promote the free flow of information to and from Cuba, as well as ensure that the trade embargo continues to promote democracy and positive change within Cuba for the benefit of the Cuban people, not the Cuban government. Be assured, these actions do not suspend or terminate the decades old Cuban trade embargo!
( linda )31 Jan,2012
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