The U.S. has further eased its Cuba sanctions in keeping with
President Obama’s policy announced in December 2014 to
support economic activity in Cuba and improve living conditions for
the Cuban people. The amendments are the third in an incremental
series of changes to the sanctions regulations permissible within
the president’s authority. A more substantial scaling back of
the U.S. trade embargo of Cuba will require Congressional
What You Need To Know
Authorized exports and re-exports to Cuba can now be
The categories of authorized exports and re-exports have been
Despite the incremental relaxation of sanctions by presidential
order, the U.S. trade embargo of Cuba remains in place subject to
action by Congress.
Prior to the amendments, payment and financing terms for
authorized exports and re-exports were restricted to
cash-in-advance or third-country financing. Under the revised
regulations, financing for authorized exports now includes sales on
open account, financing by U.S. financial institutions and letters
of credit. Items that can be exported to Cuba without obtaining a
license—and are facilitated by the new financing
building materials, equipment, and tools for use by the private
sector to build or renovate privately owned buildings;
tools and equipment for private sector agricultural
tools, equipment, supplied and instruments for use by
private-sector entrepreneurs; and
telecommunications items and infrastructure equipment.
The amendments expand the categories of items for which a
license to export or re-export may be granted on a case-by-case
basis (including to state-owned enterprises, agencies and other
organizations of the Cuban government that provide goods and
services for the use and benefit of the Cuban people) and include
the following: agricultural production; construction of public
facilities and infrastructure; artistic endeavors; education; food
processing; disaster preparedness, relief and response; public
health and sanitation; residential construction and renovation;
public transportation; and items to wholesalers and retailers for
The new regulations are also expected to increase air travel
between the U.S. and Cuba by permitting code sharing and similar
arrangements with Cuban airlines. Sales of aircraft and related
equipment to Cuba are enabled by a new general policy of approval
for exports and re-exports of items necessary to ensure the safety
of civil aviation and the safe operation of commercial aircraft
engaged in international air travel, including the export and
re-export of such aircraft to state-owned enterprises.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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While that agreement mandated export measures on Canadian softwood lumber exports destined for the United States, it also protected those lumber exports from the potential imposition of onerous import measures by the U.S.
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