Biden-Harris Administration Issues Third Known BIS/OFAC License Authorizing Vehicle Exports From U.S. To Cuba. Payments Still Must Move Through Third Countries.

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Miami, Florida-based Fuego Enterprises Inc. has reported receiving a license from the Office of Foreign Assets Control (OFAC) and from the Bureau of Industry and Security (BIS) of the United States Department of Commerce, to export “hybrid or combustion vehicles, new and used, of different brands and sizes, with a manufacturing date between 2018 and 2023, and coming directly from the United States, may be imported.”  

“The range of vehicles includes: Microcars, Subcompact and Compact Cars, Medium and Large Size Cars, Luxury Cars of Medium and Large Size, Sports cars, Convertibles, Compact Minivan and Minivan, Mini, Compact, Midsize and Large SUVs, and Pickup Trucks.  Among the brands are Ford, Mercedes Benz, Chevrolet, Toyota, BMW, Land Rover, Tesla, Cadillac, and Nissan.  In a few days, the company reports receiving approximately thirty import requests which are being processed.  Deliveries in Havana are made between ten and twenty days after the purchase is completed.”  

Miami, Florida-based Apacargo Express reported in April 2023 the company obtained a license from the OFAC to export from the United States to the Republic of Cuba: “cars, trucks, trailers, tractors, and agricultural equipment.”  The company reported the OFAC license authorizes up to US$10 million in exports during the validity of the OFAC license.  The duration of the OFAC license has not been reported.  Unknown if the company also received a license from the BIS. 

On 17 November 2022, the Biden-Harris Administration (2021- ) approved a license application submitted on 22 October 2022 by Columbia, Maryland-based Premier Automotive Export, Ltd. (PAE) to the BIS to export electric vehicles and chargers to republic of cuba nationals with the “ULTIMATE CONSIGNEE: Privately owned companies in the Republic of Cuba owned by Cuba Nationals.”  The BIS license is valid until 30 November 2026.  PAE has received five BIS licenses since 2017 including the first BIS license to export an electric vehicle to an embassy located in the Republic of Cuba.  LINK.   

On 28 September 2022, the BIS issued a license to PAE for the export of electric scooters and electric bicycles to Republic of Cuba nationals and to MSMEs.     

On 15 December 2021, the BIS denied a license application submitted on 30 September 2021 by PAE to export electric vehicles and chargers to republic of cuba nationals.  From the license application: “Specific End Use- Ordinary Cuban Nationals would be the specific End User and purchasing electric vehicle for their own personal transportation.”      

  • From the BIS: “There is a general policy of denial for exports and reexports to Cuba of items subject to the EAR, as described in Section 746.2(b) of the EAR. However, there are exceptions to the general policy of denial, some of which are listed below: … Items necessary for the environmental protection of U.S. and international air quality, waters and coastlines, including items related to renewable energy or energy efficiency, are generally approved.”   

  • A license exception is a general authorization to export or reexport certain items without a license under stated conditions.  Only the license exceptions, or portions thereof, listed Section 746.2(a)(1) of the EAR are available for Cuba…. Support for the Cuban People: License Exception Support for the Cuban People (SCP) “§ 740.21 Support for the Cuban People (SCP). (a) Introduction. This License Exception authorizes certain exports and reexports to Cuba that are intended to support the Cuban people by improving their living conditions and supporting independent economic activity; strengthening civil society in Cuba; and improving the free flow of information to, from, and among the Cuban people. (b) Improving living conditions and supporting independent economic activity.…. (1) Items for use by the Cuban private sector for private sector economic activities… (2) Items sold directly to individuals in Cuba for their personal use or their immediate family's personal use,” LINK  

Potential customers of PAE have inquired about installment payments for the purchase of EVs.  As monthly payments would be minimal in value, the cost for sending the funds through a third country financial institution would be larger than the installment amount.  Flexibility to provide installment payments will further enhance the cashflow of an MSME and further connect the MSME with the United States-based company.