Defendant Imperial Brands PLC's Fourth Status Report (2/8/21)
Defendant Imperial Brands PLC's Fifth Status Report (1/25/21)

Status: This is the original version (as it was originally made). This item of legislation is currently only available in its original format.

STATUTORY INSTRUMENTS
2021 No. 132 PROTECTION OF TRADING INTERESTS TRADE
The Protection of Trading Interests (Authorisation) Regulations 2021
Made - - - - at 9.00 p.m. on 5th February 2021

The Secretary of State makes the following Regulations in exercise of the powers conferred by Article 5, second paragraph, point (a), of Council Regulation (EC) No 2271/96 of 22 November 1996 protecting against the effects of the extra-territorial application of legislation adopted by a third country, and actions based thereon or resulting therefrom(1).

Citation
1. These Regulations may be cited as the Protection of Trading Interests (Authorisation) Regulations 2021.

Interpretation
2. In these Regulations, “the Helms-Burton Act” means the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996(2).

Authorisation to comply with Title III of the Helms-Burton Act
3. The person specified in Part 1 of the Schedule is, for the purpose specified in Part 2 of the Schedule, authorised to comply with any requirement or prohibition based on or resulting from Title III of the Helms-Burton Act(3) (protection of property rights of United States nationals). (1) EUR 1996/2271, amended by S.I. 2020/1660. EUR 1996/2271 was incorporated into domestic law at 11 p.m. on 31st December 2020 under section 3 of the European Union (Withdrawal) Act 2018 (c. 16). (2) 22 U.S.C. §§ 6021-6091. (3) Title III of the Helms-Burton Act is codified in 22 U.S.C. §§ 6081-6085.

Signed by authority of the Secretary of State for International Trade At 9.00 p.m. on 5th February 2021
Ranil Jayawardena, Parliamentary Under Secretary of State Department for International Trade

SCHEDULE Regulation 3
Authorisation to file motion to dismiss
PART 1 Authorised person Imperial Brands plc(4)
PART 2 Authorised purpose
Filing and litigating a motion to dismiss the complaint brought before the federal judiciary of the United States of America under Title III of the Helms-Burton Act in which Imperial Brands plc is named as a defendant (case number 1:20-cv-23287-DPG).

EXPLANATORY NOTE (This note is not part of the Regulations)

These Regulations, which come into force at the time they are made, authorise compliance by a specified person, for a specified purpose, with a requirement or prohibition referred to in the first paragraph of Article 5 of Council Regulation (EC) No 2271/96 of 22 November 1996 protecting against the effects of the extra-territorial application of legislation adopted by a third country, and actions based thereon or resulting therefrom (EUR 1996/2271, amended by S.I. 2020/1660).

The law of the United States of America referred to in these Regulations may be found online at https://uscode.house.gov/. A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary, or public sector is foreseen.

(4) Imperial Brands plc is a public limited company registered in England and Wales (company number 3236483).

2020 Annual Report
Imperial Brands
US Helms-Burton litigation

Imperial has been named as a defendant in a civil action in federal court in Miami, Florida under Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (“Helms-Burton”) filed on 6 August 2020. Title III provides US nationals with a cause of action and a claim for treble damages against persons who have “trafficked” in property expropriated by the Cuban government. Title III is largely untested because it did not come into effect until May 2019. Treble damages are automatically available under Helms-Burton. Although the filed claim is for unquantified damages, we understand the claim could potentially reach approximately $365 million, based on the claimants’ claim to own 90% of the property, which they value at $135 million (and then treble). The claim is based on allegations that Imperial, through Corporación Habanos S.A. (a joint venture between one of Imperial’s now former subsidiaries and the Cuban government), has “trafficked” in a factory in Havana, Cuba that the Cuban government confiscated from the claimants’ ancestor in the early 1960s, by using the factory to manufacture, market, sell, and distribute Habanos cigars. Imperial is subject to an EU law known as the EU Blocking Statute (Regulation (EC) No. 2271/96), which conflicts with Helms-Burton, protects Imperial against the impact of Title III, and impacts how Imperial may respond to the threatened litigation. The EU Blocking Statute continues to apply in the UK during the Brexit “transition period” in place until 31 December 2020. After 31 December 2020, the substance of the law is likely to stay the same in the UK, at least in the near future. On 23 September 2020 the US court granted a stay of the action until 9 February 2021 or until further order of the court, while Imperial awaits the European Commission’s response to its request for authorisation to defend the action. Separately, two other groups of prospective claimants have indicated that they intend to file a lawsuit against Imperial in federal court in Miami, Florida. Neither claim has been filed. The threatened claims relate to other properties in Cuba, which the prospective claimants claim were confiscated from their ancestors by the Cuban government in the 1960s and which they claim are now used by Corporación Habanos S.A for commercial activities. The prospective claimants claim to be entitled to treble damages from Imperial.

Economic Eye On Cuba

UK Government Regulation Text Authorizing Imperial Brands To Defend Itself In Libertad Act Lawsuit; EU-Based Defendants Await Guidance; Could UK Be Template For EU?

U.S. - Cuba Trade and Economic Council, Inc.