Huawei Of China Gaining In Cuba... While U.S. Companies Do Not

From 20 January 2016 to 22 January 2016, The Honorable Daniel Sepulveda, Deputy Assistant Secretary of State and U.S. Coordinator for International Communications and Information Policy led an official fourteen-member delegation to the Republic of Cuba which included The Honorable Thomas Wheeler, Chairman of the Federal Communications Commission (FCC) and FCC staff, representatives from the OFAC, and according to Deputy Assistant Secretary Sepulveda, representatives of “academia, and the private sector.”  

The names of the non-United States government participants have not been disclosed by the United States Department of State.  The Washington, DC-based Information Technology Industry Council confirmed that its president, Mr. Dean Garfield, participated in the delegation “led by the U.S. Ambassador and Deputy Assistant Secretary of State for International Communications and Information Policy Daniel Sepulveda.”  Other private sector participants included representatives of California-based Cisco Systems, Pennsylvania-based Comcast, Sweden-based Ericsson (North American Headquarters in Plano, Texas).

From one private sector participant on 28 January 2016: “The trip was an official U.S. delegation visit by the State Department, and [redacted] was invited to join as part of the delegation.  I can find a point of contact to pass along at the State Department who can answer your questions since they organized the trip.”  

From Chairman Wheeler on 27 January 2016: “Ambassador Daniel Sepulveda from the State Department led our delegation which also included representatives from the Department of the Treasury as well as representatives of the technology community. The inclusion of the private sector in the talks advanced the dialog with real life examples of what was possible.”  

On 1 February 2016, Republic of Cuba government-operated Empresa Nacional de Telecomunicaciones de Cuba S.A. (ETEC S.A.) reported that it would install broadband services within the area of Old Havana using equipment sourced from Shenzhen, People’s Republic of China-based Huawei Technologies Co Ltd. (2015 revenues exceeded US$28 billion).  On 6 November 2015, Huawei Technologies Co Ltd. Reported an agreement to market mobile devices, parts, accessories and to train repair personnel.  The government of the People’s Republic of China has extended substantial financial credits to the government of the Republic of Cuba. 

A challenge for United States-based communications/telecommunications companies and the United States government is how to answer the following inquiry from the Ministry of Communications of the Republic of Cuba: “If we purchase your equipment, how do we know the equipment will not be compromised before it arrives or have an ability to be compromised from abroad after its installation?  Will you augment the specifications of equipment so we may monitor all voice, text, data and email traffic flowing through the equipment?”   

Transcript Of The White House Press Briefing- Visit To Cuba By President Obama

THE WHITE HOUSE
Office of the Press Secretary
 
For Immediate Release                         
February 18, 2016
 
 
PRESS BRIEFING
BY PRESS SECRETARY JOSH EARNEST
AND DEPUTY NATIONAL SECURITY ADVISOR BEN RHODES
 
James S. Brady Press Briefing Room
 
12:54 P.M. EST
 
MR. EARNEST:  Good afternoon, everybody.  Nice to see a good crowd here today.  I have joining me at the briefing the Deputy National Security Advisor, Ben Rhodes.  As many of you know and have covered, Ben was instrumental in implementing the President’s vision for advancing our Cuba policy, and we made a pretty historic announcement today that, next month, President Obama and the First Lady will be traveling to Cuba. 
 
And so Ben is here to talk a little about what we hope to accomplish over the course of that trip.  And then he’ll stay and take as many questions as you all have about that trip.... 

For The Complete Transcript Click Here

DOT Publishes Application For Air Carriers That Want To Service Cuba

DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
WASHINGTON, D.C.

Issued by the Department of Transportation on the 16th day of February, 2016
Served: February 16, 2016

ORDER INSTITUTING PROCEEDING AND INVITING APPLICATIONS

Air Transport Services- 1953

Air Transport Services- 1953 Amendments

Memorandum of Understanding- 2016

Summary
By this order the Department (1) institutes the 2016 U.S.-Cuba Frequency Allocation Proceeding; and (2) invites U.S. carriers to apply for exemption authority and allocation of newly available frequencies to provide scheduled services between the United States and Cuba.

Background

On February 16, 2016, the United States and Cuba signed a Memorandum of Understanding (MOU) that will allow for the resumption of scheduled air services between the United States and Cuba. For scheduled combination or all-cargo services to and from Havana, under the terms of the MOU, U.S. carriers may operate up to twenty (20) daily round-trip frequencies. For scheduled combination or all-cargo services to and from each of the other nine (9) international airports in Cuba, U.S. carriers may operate up to ten (10) daily round-trip frequencies, for a total of ninety (90) daily non-Havana U.S.-Cuba round-trip frequencies.1 The MOU also allows for unlimited charter services to and from any point in Cuba, in accordance with the regulations of each country.2 This proceeding accordingly will not address charter services. Its sole focus will be on the allocation of scheduled service frequencies.

1 The nine airports, other than Havana’s José Marti International Airport (HAV), that are authorized for international services are: the Ignacio Agramonte International Airport in Camagüey (CMW); the Jardines del Rey Airport in Cayo Coco (CCC); the Vilo Acuña Airport in Cayo Largo (CYO); the Jaime González Airport in Cienfuegos (CFG); the Frank País Airport in Holguín (HOG); the Sierra Maestra Airport in Manzanillo (MZO); the Juan Gualberto Gómez Airport in Matanzas (VRA); the Abel Santamaría Airport in Santa Clara (SNU); and the Antonio Maceo Airport in Santiago de Cuba (SCU).

2 The MOU does not place limits on the number of carriers that may provide U.S.-Cuba services, nor does it limit aircraft capacity for scheduled or charter services.

2016 U.S.-CUBA FREQUENCY ALLOCATION PROCEEDING

DOCKET DOT-OST-2016-0021

Congressional Delegation Visits Cuba.... No Mention On Their House.gov Sites

Congressional Delegation Visits Cuba.... No Mention On Their House.gov Sites

CONGRESSIONAL DELEGATION VISITS CUBA- Seven members of the United States House of Representatives visited the Republic of Cuba from 13 February 2016 to 15 February 2016:  Kathy Castor (D- Florida), John Garamendi (D- California), Paul Gosar (R- Arizona), Tom Emmer (R- Minnesota), Brendan Boyle (D- Pennsylvania), Alan Lowenthal (D- California), Mike Bishop (R- Michigan). 

No member of the delegation issued a media release or statement to their www.house.gov account in advance of the visit.  In advance of the visit, only Representatives Castor and Emmer were identified as participating.

Read More

DOT Secretary Anthony Foxx To Visit Cuba On 16 February 2016 To Sign Civil Aviation "Arrangement"

From The United States Department of Transportation
12 February 2016

U.S. Department of Transportation Secretary Anthony Foxx and Assistant Secretary of State Charles Rivkin Travel to Cuba

U.S. Department of Transportation Secretary Anthony Foxx and Assistant Secretary of State for Economic and Business Affairs Charles H. Rivkin will travel to Havana, Cuba, February 16 to sign a bilateral arrangement to re-establish scheduled air services between the United States and Cuba for the first time in more than 50 years.

The signing brings into effect the arrangement that was reached December 16, 2015.  This arrangement will continue to allow charter flight operations.  While U.S. law prohibits travel to Cuba for tourist activities, this arrangement will facilitate authorized travel, enhance traveler choices, and strengthen people-to-people links between the two countries.  Scheduled services are expected to commence sometime later this year.

Expanding authorized travel is a critical focus of President Obama’s approach to Cuba policy, which emphasizes engagement with the Cuban people.

Knowlege@Wharton Interview

I recently spoke with John Kavulich, President of the U.S.-Cuba Trade and Economic Council. During our conversation, John shared his thoughts on the significant policy and regulatory changes taking place as a result of the reopening of relations between the U.S. and Cuba, with specific advice for American companies seeking opportunities in that island nation.

To hear more from John, including his thoughts on the Cuban Government’s lack of urgency regarding President Obama’s initiatives click here.

I also invite you to join us March 15th at New York’s Convene Midtown East for Knowledge@Wharton and Momentum’s 3rd U.S.-Cuba Corporate Counsel Summit, the premier forum for those navigating Cuba's complex legal and regulatory system. Hear from John in a special address: "The Remaining 311 Days: Where We've Been, Where We Are and Where We're Likely to Be". 

http://knowledge.whartonevents.com/john-kavulich-interview/

Preliminary Data.... 2015

ECONOMIC EYE ON CUBA©

February 2016

 Food/Ag Exports In December 2015 Deceased By 83% Compared To December 2014

2015 Food/Ag Exports Decreased 41% Compared To 2014

Cuba Ranked 60th of 230 Food/Ag Export Markets In 2015

Healthcare Product Exports Increased 457% In 2015

 

December 2015- US$4,302,105.00 and December 2014- US$25,219,764.00

2015- US$170,670,054.00 and 2014- US$291,258,881.00

Healthcare Products 2015- US$4,896,966.00 and 2014- US$879,267.00

From Tampa Tribune: Despite Tampa's ties to Cuba, commercial flights are elusive

Despite Tampa’s ties to Cuba, commercial flights are elusive

By Paul Guzzo- Tribune Staff

TAMPA — As the first commercial flights to Cuba are announced in the coming months, Tampa is unlikely to make the list, aviation analysts say.

That puts at risk efforts by local leaders to forge modern links on the foundation of historical connections between the two regions in the areas of culture, business, politics and education.

Ease of travel is seen as key to capitalizing on the normalization of relations with the communist nation, and few are predicting when a second round of direct flights will be announced — other than to say it could be months or even years away.

What’s more, in a worst-case scenario, the rise of commercial flights to Cuba from other cities could push existing charter services out of business — including those flying from Tampa seven times a week — and leave the region with no direct connection to Cuba.

Among the casualties could be a Cuban consulate in Tampa or St. Petersburg, pushed for by local business and political leaders, and the direct flights home that Tampa’s Cuban-American population — third-largest in the United States — have enjoyed since charters started at Tampa International Airport in 2011.

“Airplanes are an expensive asset and they need to be put where they will make the most amount of money,” said Henry Harteveldt, a travel industry analyst with the San Francisco-based Atmosphere Research Group. “So unfortunately, Tampa will not be in that first wave of commercial flights.”

Miami, home to the largest Cuban-American population in the United States, will get most of the commercial routes to Cuba at its international airport. Even if airlines choose a second Florida city in round one, analysts say, it likely will be nearby Fort Lauderdale–Hollywood International Airport.

“The primary carrier in Tampa is Southwest,” said George Hamlin of Virginia-based Hamlin Transportation Consulting. Southwest has said it is interested in commercial service to Cuba. “But Southwest may have divided loyalties. They also have a strong carrier in Fort Lauderdale, which has a geographic advantage.”Not only is Fort Lauderdale closer to Miami, Hamlin said, Tampa passengers would fly south toward Cuba through Fort Lauderdale but the reverse is unlikely.  “You’re not going to flow people from Lauderdale to Tampa to fly them southeast,” he said.

Fort Lauderdale along with the Tampa area is rumored to be a favorite for the first Cuban consulate in five decades — the two nations reopened embassies in August — and ease of travel could tip the scales, said John Kavulich, president of the U.S.-Cuba Trade and Economic Council.

❖ ❖ ❖

Tampa International could maintain its charter schedule if the numbers stay up — 71,462 people made the trip in fiscal 2015, up 10,000 from the year before. But the numbers could drop dramatically because people from outside the area who travel here for the charter flights would likely choose commercial flights from other cities, instead, for amenities such as online tickets and a crew that transfers baggage.

Charter flight passengers headed to Cuba must arrive at Tampa International four hours early to get tickets and must haul any baggage from connecting flights themselves.  Another challenge for the charters will be hanging onto planes and crew. The commercial airlines now provide them to charter companies serving Cuba.  Both charter companies operating out of Tampa International, ABC Charters and Cuba Travel Services, use American Airlines planes and crew.

American Airlines has plans to operate commercial flights out of Miami, spokesperson Matt Miller told the Tribune, but he declined to elaborate. He said he could not comment on whether flights are planned from Tampa.  “We do not know at this point what the future will look like in terms of a breakdown between scheduled service and charter service,” Miller said.

In the event American does fly from Miami, transportation consultant Hamlin said, the airlines might send Tampa customers to Miami for flights rather than help charter companies that compete with the airline.  “Charters will be largely converted to scheduled service,” Hamlin said. “The charter service was an accommodation when the scheduled service was not available.”

Michael Zuccato, general manager of Cuba Travel Services, said he is confident planes will remain available to his charter service and he plans to continue operating here as well as in Miami.  “I think we will have fewer flights,” Zuccato said. “But the charter component will always exist.”

The United States and Cuba struck a deal to allow as many as 110 daily flights once commercial service begins — a maximum of 20 a day to Havana and up to 10 each at nine other Cuban cities with international airports.  It’s a low number, analysts say, and that’s bad news for Tampa.

❖ ❖ ❖

The U.S. Department of Transportation is expected to begin accepting route applications from airlines in the coming weeks.  At least five airlines have expressed interest — American, JetBlue, United Airlines, Southwest and Delta. More are expected.

Cuba charter services focus on Florida because the state has more Cuban-Americans than any other.  Commercial airlines, on the other hand, will use their marketing power to sell tickets to Cuba on a national scale and will choose departure cities to maximize business, analysts say.

Favored cities will be those located near large Cuban-American populations and those with an airline’s major hub, said Robert Mann, an aviation industry analyst through his New York-based R.W. Mann & Co. Tampa’s airport is not a major hub for any airlines. And customers among the area’s estimated 150,000 Cuban-Americans likely will be seen as willing to make the trip to South Florida for a flight, Mann said.

For other regions — say, Tulsa, Oklahoma, — the deciding factor in travel to Cuba may be whether there is a nearby airport with an airline that goes there, Mann said.

Tulsa International Airport is a 90-minute connecting flight from Houston’s George Bush Intercontinental Airport and Houston is one of two Cuba departure sites preferred by United Airlines, said United spokesman Rahsaan Johnson.

“We at United have expressed interest in serving Cuba from Newark and Houston,” Johnson told the Tribune via email. “Newark and Houston are two of United’s largest hub airports.”

Newark Liberty International Airport is in an area stretching from northern New Jersey to New York City that has been nicknamed “Havana on the Hudson,” with the second-largest Cuban-American population in the United States.

Other airports that analysts predict will receive the first wave of commercial flights to Cuba are Hartsfield–Jackson Atlanta International Airport, a major hub for Delta, and New York’s John F. Kennedy International Airport, a major hub for three airlines seeking commercial flights to Cuba — Jet Blue, Delta and American — and located in the city considered the U.S. capital of travel and commerce.

The 110 daily flights agreed upon may be restricted further at first because Cuba is not ready for the influx of new visitors. That, in turn, could limit the number of Cuba flight cities in the United States.

In 2015, Cuba received a record 3.52 million visitors, up 17 percent from 2014 due in part to more American visitors. With only an estimated 63,000 hotel rooms nationwide, Cuba is struggling to handle even this surge — and it comes with just 12 charter flights a day on average from the United States, according to Virginia-based Aviation Planning & Finance.

“The ability to fly many flights is there,” said transportation consultant Hamlin. “But where are you going to put the people?”

❖ ❖ ❖

Even if Tampa makes the cut now on route applications submitted by the airlines to the Department of Transportation, analysts predict the airlines would cross the city off as the number of flights shrinks.

“You really have to ration the flights and put them where they can generate the most good,” said Harteveldt with Atmosphere Research Group.
If the charters evaporate, too, the dream of hosting that first Cuban consulate will, too, said Kavulich with the U.S.-Cuba Trade and Economic Council.

“Consulates need to be as self-sustaining as possible,” Kavulich said. “That revenue comes primarily from visa fees, so a lack of flights would impact that revenue source.”

Still, Kavulich said he believes Cuba will look out for Tampa, even if private enterprise doesn’t, and work to save some charter flights here or to add a commercial flight.

“This is also a political exercise,” he said. “Cuba may ask for a Tampa route because it’s been aggressive with outreach.”

Tampa has exchanged dignitaries and delegations with the island nation and forged cultural and science partnerships with Cuba.

The Tampa City Council, Hillsborough County Commission and Greater Tampa Chamber of Commerce all have voted into bring the consulate to Tampa. St. Petersburg Mayor Rick Kriseman traveled to Cuba to lobby for his city and the St. Petersburg City Council has also voted its support.

Then there is the historic Tampa-Cuba connection dating back a century, before Miami even was incorporated, when Cuban immigrants helped found Ybor City. Tampa went on become the cigar capital of the world using Cuban tobacco.  Tampa also was a favorite haunt for José Martí, regarded as the George Washington of Cuba, and the city’s residents supported the island nation’s War of Independence against Spain.

Tampa International, which has made adding international flights a priority, isn’t ready to give up on service to Cuba, Vice President of Marketing Chris Minner told the Tribune via email.  “We are always working with our partners to grow TPA’s existing air service and bring in new routes,” Minner said. “Service to Cuba remains a special focus.”

The airport needs broad-based help from the Tampa area in its effort, said Bill Carlson, president of Tucker/Hall, a public relations agency that has supported business and humanitarian missions in Cuba since 1999.

“I feel confident that Tampa Bay will get at least one commercial flight, but it will take a unified effort of business, political and cultural leaders working with the airport to make that happen,” Carlson said. “We cannot afford to lose this once-in-a-lifetime opportunity to reclaim our historic position with Cuba.”

Link To Article:

http://www.tbo.com/news/cuba/despite-tampas-ties-to-cuba-commercial-flights-are-elusive-20160207/

 

Secretaries Pritzker, Vilsack & Lobbying Group.... State Department Violates US Law

ECONOMIC EYE ON CUBA©

February 2016

Special Report

Secretaries Pritzker, Vilsack & Lobbying Group… State Department Violates US Law

Based Upon 2016 Actions by State Department, Representatives of U.S. Companies Could Have Participated in 2015 Visits by Secretaries Pritzker & Vilsack and Benefited from Them

Evolution of Legal Thinking or Political Calculation?

In 2015, why would two Obama Administration cabinet members and a Washington, DC-based not-for-profit lobbying group advocate a legal and policy positions that would prohibit and/or restrict the ability of departments to 1) promote United States companies to a government and 2) assist United States companies with meeting government entities that might purchase products and/or services from the companies? 

In 2016, why does the United States Department of State take a decision which undermines those legal and policy positions?  The answer may be due to the less than expected commercial engagement by Republic of Cuba government-operated entities with United States-based companies and unlikely successful legislative initiatives before 20 January 2017.   

Click Here For Complete 14-Page Report In PDF Format

Impact Of New BIS/OFAC Regulations- Payment Terms (Leverage For Cuba) & Credit Cards (Pressure From Airlines)

Payment Terms

Now that United States-based exporters and their respective financial institutions are authorized to provide payment terms (cash, 30 days, 60 days, 90 days, etc. and obtain financing from those institutions) for authorized exports, a likely result will be Republic of Cuba government-operated entities respond that the length of the payment terms will not be comparable to the 100 days to 1 year to 2 years that they receive from existing providers (and those providers generally have a government agency export guarantee). 

There will be, however, a few (perhaps large multinationals and family-owned companies) that will provide extended payment terms for the value of publicity that will result from having their product/service in the Republic of Cuba..... But, extended duration payment terms are not, nor should be, a desired and sustainable commercial model. 

United States companies will continue to be successfully used as leverage to extract more beneficial payment terms from companies (especially government-controlled and those with export guarantees) in other countries.

The most immediate beneficiaries will be the 200+ categories of licensed businesses who will qualify for personally-guaranteed (by family members residing in the United States) micro-finance loans and product payment terms- again, primarily by family members.

The government of the Republic of Cuba continues to have laws and regulations that prohibit and/or restrict the direct importation of products outside of the Republic of Cuba government-operated distribution channels.

Credit Card Usage....

There will be an accelerated effort by United States-based air carriers to have credit card usage in place prior to the commencement of regularly-scheduled passenger services because the airlines need to have an ability for passengers (especially their high-revenue frequent flyers) to make credit card payments at their respective ticket counters to purchase tickets, make flight changes, obtain upgrades, etc.  The airlines have influence due to many financial institutions branding Visa and MasterCard with airlines (JP Morgan Chase with United; Citibank with American, etc.)

OFAC & BIS Announce New & Revised Cuba Regulations

U.S. Treasury Department

Office of Public Affairs

EMBARGOED Until 9:00 AM ET:  January 26, 2016

CONTACT:  Betsy Bourassa, Treasury Public Affairs (202) 622-2960                      

TREASURY AND COMMERCE ANNOUNCE

FURTHER AMENDMENTS TO THE CUBA SANCTIONS REGULATIONS

Amendments Further Implement President Obama’s Policy

Related to Easing of Sanctions on Cuba

WASHINGTON – Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce’s Bureau of Industry and Security (BIS) are announcing new amendments to the Cuban Assets Control Regulations (CACR) and Export Administration Regulations (EAR), respectively.  These amendments further implement the new direction toward Cuba that President Obama laid out in December 2014.  The changes will take effect on January 27, 2016, when the regulations are published in the Federal Register.  The new amendments are outlined below.

Treasury Secretary Jacob J. Lew said, “Today’s amendments to the Cuban Assets Control Regulations build on successive actions over the last year and send a clear message to the world: the United States is committed to empowering and enabling economic advancements for the Cuban people.  We have been working to enable the free flow of information between Cubans and Americans and will continue to take the steps necessary to help the Cuban people achieve the political and economic freedom that they deserve.”

Commerce Secretary Penny Pritzker said, “Following the first ever U.S.-Cuba Regulatory Dialogue and my fact-finding trip to Cuba in October, we have been working tirelessly to maximize the beneficial impact of U.S. regulatory changes on the Cuban people.  Today’s Commerce rule builds on previous changes by authorizing additional exports including for such purposes as disaster preparedness; education; agricultural production; artistic endeavors; food processing; and public transportation.  These regulatory changes will also facilitate exports that will help strengthen civil society in Cuba and enhance communications to, from and among the Cuban people.  Looking ahead, we will continue to support greater economic independence and increased prosperity for the Cuban people, as we take another step toward building a more open and mutually beneficial relationship between our two nations.”

These amendments will remove existing restrictions on payment and financing terms for authorized exports and reexports to Cuba of items other than agricultural items or commodities, and establish a case-by-case licensing policy for exports and reexports of items to meet the needs of the Cuban people, including those made to Cuban state-owned enterprises.  These amendments will further facilitate travel to Cuba for authorized purposes by allowing blocked space, code-sharing, and leasing arrangements with Cuban airlines; authorizing additional travel-related and other transactions directly incident to the temporary sojourn of aircraft and vessels; and authorizing additional transactions related to professional meetings and other events, disaster preparedness and response projects, and information and informational materials, including transactions incident to professional media or artistic productions in Cuba.

To see the Treasury regulations, which can be found at 31 Code of Federal Regulations (CFR), part 515, please see here.  To see the Commerce regulations, which can be found at 15 CFR part 746, please see here.  Effective January 27, major elements of the changes in the revised regulations include:

Financing–

Removing financing restrictions for most types of authorized exports.

  • Restrictions on payment and financing terms for authorized exports and reexports, except for agricultural commodities and agricultural items, will be removed, and U.S. depository institutions will be authorized to provide financing, including, for example, issuing a letter of credit for such exports and reexports.  Currently, payment and financing terms for all authorized exports are restricted to cash-in-advance or third-country financing.  Effective January 27, 2016, examples of permissible payment and financing terms for authorized non-agricultural exports and reexports will include: payment of cash in advance; sales on an open account; and financing by third-country financial institutions or U.S. financial institutions.  OFAC is required by statute to maintain the existing limitations on payment and financing terms for the export and reexport of agricultural commodities and agricultural items. 

Exports –

Additional amendments to increase support for the Cuban people and facilitate authorized exports.

  • Certain Additional Transactions Authorized. OFAC is expanding an existing general license to authorize certain additional travel-related transactions as are directly incident to the conduct of market research; commercial marketing; sales or contract negotiation; accompanied delivery; installation; leasing; or servicing in Cuba of items consistent with the export or reexport licensing policy of the Department of Commerce, provided that the traveler’s schedule of activities does not include free time or recreation in excess of that consistent with a full-time schedule.
  • Civil society. BIS will generally approve license applications for exports and reexports of commodities and software to human rights organizations or to individuals and non-governmental organizations that promote independent activity intended to strengthen civil society in Cuba.
  • News gathering. BIS will generally approve license applications for exports and reexports of commodities and software to U.S. news bureaus in Cuba whose primary purpose is the gathering and dissemination of news to the general public.
  • Telecommunications. BIS will generally approve license applications for exports and reexports of telecommunications items that would improve communications to, from, and among the Cuban people.
  • Agriculture. BIS will generally approve license applications for exports and reexports of certain agricultural items (such as agricultural commodities not eligible for a license exception; insecticides; pesticides; and herbicides).

·         Civil aviation safety. BIS will generally approve license applications for exports and reexports of items necessary to ensure the safety of civil aviation and the safe operation of commercial aircraft engaged in international air transportation, including the export or reexport of such aircraft leased to state-owned enterprises.

  • Meeting the needs of the Cuban people. BIS is creating a case-by-case licensing policy that will apply to exports and reexports of items to meet the needs of the Cuban people, including exports and reexports for such purposes made to state-owned enterprises and agencies and organizations of the Cuban government that provide goods and services to the Cuban people. 

o   Examples of exports and reexports eligible for this licensing policy are items for:  agricultural production; artistic endeavors (including the creation of public content, historic and cultural works and preservation); education; food processing; disaster preparedness, relief and response; public health and sanitation; residential construction and renovation; public transportation; and the construction of infrastructure that directly benefits the Cuban people (e.g., facilities for treating public water supplies and supplying energy to the general public).

  • A general policy of denial will still apply to exports and reexports of items for use by state-owned enterprises, agencies, or other organizations of the Cuban government that primarily generate revenue for the state, including those in the tourism industry and those engaged in the extraction or production of minerals or other raw materials. Additionally, applications to export or reexport items destined to the Cuban military, police, intelligence and security services remain subject to a general policy of denial.

Air Carrier Services –

Additional amendment to facilitate carrier service by air and with Cuban airlines.

  • The entry into blocked space, code-sharing, and leasing arrangements to facilitate the provision of carrier services by air, including the entry into such arrangements with a national of Cuba, will be authorized. 

Travel –

Expanding authorizations within existing travel categories to facilitate travel to Cuba for additional purposes.

  • Temporary Sojourn. Certain personnel who are operating or servicing vessels or aircraft will be authorized to engage in travel-related and other transactions in Cuba to facilitate the temporary sojourn of aircraft and vessels as authorized by the Department of Commerce in connection with the transportation of authorized travelers between the United States and Cuba.
  • Information and informational materials. OFAC will authorize travel-related and other transactions directly incident to professional media or artistic productions of information or informational materials for exportation, importation, or transmission, including the filming or production of media programs (such as movies and television programs); music recordings; and the creation of artworks in Cuba by persons that are regularly employed in or have demonstrated professional experience in a field relevant to such professional media or artistic productions.  OFAC will also be expanding an existing general license to authorize transactions relating to the creation, dissemination, or artistic or other substantive alteration or enhancement of informational materials, including employment of Cuban nationals and the remittance of royalties or other payments.
  • Professional meetings. OFAC will authorize by general license travel-related and other transactions to organize professional meetings or conferences in Cuba.  The existing general license authorizes only attendance at such meetings or conferences.
  • Public performances, clinics, workshops, athletic, and other competitions and exhibitions. Similar to the change to the professional meetings category, OFAC will authorize by general license travel-related and other transactions to organize amateur and semi-professional international sports federation competitions and public performances, clinics, workshops, other athletic or non-athletic competitions, and exhibitions in Cuba.  OFAC also will remove requirements that that U.S. profits from certain events must be donated to certain organizations and that certain events be run at least in part by U.S. travelers.
  • Humanitarian projects. OFAC will expand the list of authorized humanitarian projects to include disaster preparedness and response.

Chairman of FCC Visits Cuba.... And It's Not Reported.....

From 20 January 2016 to 22 January 2016, The Honorable Tom Wheeler, Chairman of the Federal Communications Commission (FCC), visited the Republic of Cuba. 

He participated in meetings which included representatives of the United States Department of State, United States Department of Commerce, and United States Department of the Treasury.

Neither the United States government nor the government of the Republic of Cuba provided information about this visit; Republic of Cuba government-operated media issued a report.

Tom Wheeler became the 31st Chairman of the FCC on November 4, 2013. Chairman Wheeler was appointed by President Barack Obama and unanimously confirmed by the United States Senate.

For over three decades, Chairman Wheeler has been involved with new telecommunications networks and services, experiencing the revolution in telecommunications as a policy expert, an advocate, and a businessman. As an entrepreneur, he started or helped start multiple companies offering innovative cable, wireless, and video communications services. He is the only person to be selected to both the Cable Television Hall of Fame and The Wireless Hall of Fame, a fact President Obama joked made him “The Bo Jackson of Telecom.”

Prior to joining the FCC, Chairman Wheeler was Managing Director at Core Capital Partners, a venture capital firm investing in early stage Internet Protocol (IP)-based companies. He served as President and CEO of Shiloh Group, LLC, a strategy development and private investment company specializing in telecommunications services and co-founded SmartBrief, the internet’s largest electronic information service for vertical markets. From 1976 to 1984, Chairman Wheeler was associated with the National Cable Television Association (NCTA), where he was President and CEO from 1979 to 1984. Following NCTA, Chairman Wheeler was CEO of several high tech companies, including the first company to offer high speed delivery of data to home computers and the first digital video satellite service. From 1992 to 2004, Chairman Wheeler served as President and CEO of the Cellular Telecommunications & Internet Association (CTIA).

Chairman Wheeler wrote Take Command: Leadership Lessons of the Civil War (Doubleday, 2000) and Mr. Lincoln's T-Mails: The Untold Story of How Abraham Lincoln Used the Telegraph to Win the Civil War (HarperCollins, 2006). His commentaries on current events have been published in the Washington PostUSA TodayLos Angeles TimesNewsday, and other leading publications.Presidents Clinton and Bush each appointed Chairman Wheeler a Trustee of the John F. Kennedy Center for the Performing Arts, where he served for 12 years. He is also the former Chairman and President of the Foundation for the National Archives, the non-profit organization dedicated to telling the American Story through its documents, and a former board member of the Public Broadcasting Service (PBS).

Chairman Wheeler is a proud graduate of The Ohio State University and the recipient of its Alumni Medal. He resides in Washington, D.C.

FCC Removes Cuba From The Exclusion List For International Section 214 Authorizations

Removing Cuba from the Exclusion List for International Section 214 Authorizations (click here for complete text)

By the Chief, International Bureau:

I.    INTRODUCTION
1.    In this Order, we remove Cuba from the Commission’s “Exclusion List for International Section 214 Authorizations” (Exclusion List).   The Exclusion List identifies countries and facilities that are not covered by grant of a global facilities-based Section 214 application and require a separate international Section 214 application filed under section 63.18(e)(3) of the Commission’s rules.   We recently proposed to remove Cuba from the Exclusion List based on State Department guidance announcing certain changes to its policy concerning Cuba and requesting that the Commission remove Cuba from the Exclusion List.
II.    BACKGROUND
2.    The International Bureau (Bureau) adopted the Exclusion List in 1996, as required by the Commission’s 1996 Streamlining Order.   In the 1996 Streamlining Order, the Commission adopted new rules that permitted applicants to obtain global facilities-based international Section 214 authority, rather than country-specific authority.   At the same time, the Commission tasked the Bureau with maintaining “a list that identifies any restrictions on providing service to particular countries or using particular facilities, and whether separate Section 214 authority is needed for these countries and/or facilities.”   The Commission noted, as an example, the State Department’s separate filing requirements for service to Cuba.   Consistent with that direction, on July 29, 1996, the Bureau adopted the Exclusion List Order and included Cuba on the Exclusion List.   As a result, applicants seeking to provide facilities-based service between the United States and Cuba were required to file a separate Section 214 application that would be coordinated with the State Department and processed by the Commission on a non-streamlined basis.
3.    The Commission has licensed and regulated telecommunications services between the United States and Cuba in conformance with guidance from the State Department, first received in 1993, and updated periodically.  On January 21, 2010, based on revised policy guidance from the State Department, the International Bureau announced that it would continue to identify Cuba on the Exclusion List.   On October 26, 2015, the State Department rescinded its January 12, 2010 guidance and replaced it with new guidance.   As part of that new guidance, the State Department recommended that the Commission “remove Cuba from the Commission’s ‘Exclusion List for International Section 214 Authorizations’ and allow all carriers to provide telecommunications services between the United States and Cuba pursuant to global Section 214 authority under section 63.18(e)(l) of the Commission rules.”   
4.    On November 24, 2015, we released a public notice seeking comment on removing Cuba from the Exclusion List.   All commenters support removing Cuba from the Exclusion List, consistent with State Department recommendations.   AT&T states that removal of Cuba from the Exclusion List would help foster competition for bilateral communications between the United States and Cuba, and thus increase the flow of information to and from the Cuban people.   Medtronic supports removing Cuba from the Exclusion List, claiming it would be easier for carriers to obtain authority to Cuba, which will then promote connectivity for medical devices and services, such as remote monitoring of medical devices and exchange of medical information between the two countries.
III.    DISCUSSION
5.    We adopt our proposal to remove Cuba from the Commission’s Exclusion List.  We agree with the commenters that removing Cuba from the Exclusion List will make it easier for U.S. facilities-based carriers to initiate service to Cuba, promote open communications, and help foster bilateral communications between the United States and Cuba.   With this action, we streamline the Section 214 authorization process by including Cuba within the global Section 214 authority of section 63.18(e)(1) of the Commission’s rules, rather than requiring carriers to file a separate application under section 63.18(e)(3).  Streamlining this process will allow carriers seeking new international Section 214 authority for facilities-based service to Cuba to receive such authority sooner, and will permit carriers with existing global Section 214 authority to provide services between the United States and Cuba without additional authorization.  Our streamlined processing allows for an application to be granted, unless opposed by the Commission or another party, on the 14th day after being placed on public notice, and the applicant may then commence operations on the 15th day after the public notice listing.   Such action benefits the public interest as it will likely alleviate administrative and cost burdens on both the applicant and the Commission, and promote competition on the U.S-Cuba route.
IV.    ORDERING CLAUSES
6.    IT IS ORDERED, pursuant to Sections 4(i) and 214 of the Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i), 214, and Sections 0.51 and 0.261 of the Commission’s rules, 47 CFR §§ 0.51, 0.261, that this Order IS ADOPTED and Cuba is removed from the Exclusion List for International Section 214 Authorizations and that IB Docket No. 15-289 is TERMINATED.
7.    IT IS FURTHER ORDERED that this Order SHALL BE EFFECTIVE upon release.  Petitions for reconsideration under Section 1.106 of the Commission’s rules, 47 CFR § 1.106, or applications for review under Section 1.115 of the Commission’s rules, 47 CFR § 1.115, may be filed within 30 days of the date of the release of this Order.

FEDERAL COMMUNICATIONS COMMISSION
                    
Mindel De La Torre
Chief, International Bureau

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Former CPA Jailed For DeFrauding Seniors In Cuba Scheme

Herald & Review
Decatur, Illinois
10 January 2016

Former CPA jailed for defrauding seniors in Cuba scheme

DECATUR – Gregory S. Stoerger, a former Mattoon-based certified public accountant, is in jail on $50,000 bond after he allegedly defrauded two Decatur seniors out of $5,600 by promising them investments in Cuba that would result in selling their condominium.

Stoerger, 34, was arrested Thursday after he admitted to investigators from the Macon County State's Attorney's Office that he received checks from the victims, which he cashed, knowing “they would not be getting their money back,” and “he knew what he did was deceitful,” said a probable cause affidavit by investigator David Cook.

On Nov. 20, Stoerger went to the residence of the two victims, a 75-year-old woman and 86-year-old man. He promised them “a return on money if they invested with him in a foreign investment exchange in Cuba,” Cook wrote in his statement.

The couple gave Stoerger a check for $3,600.

Stoerger returned to the couple's home Dec. 9. “This time he was asking for $2,000 with a promise that he would purchase their condominium.”

After he explained that he would invest the money in order to make enough of a return to purchase their condominium, they gave him a check for $2,000.

In his statement, Cook notated that Stoerger was convicted in Champaign County in a 2013 case, in which he stole about $19,000 from a church for which he was doing the accounting.

He was convicted of felony forgery in that case on Oct. 15, 2013, and sentenced to a two-year term of conditional discharge. That term expired five weeks before he contacted the Decatur victims at their home.

Stoerger, a licensed certified public accountant since January 2012, did not renew his license when it expired Sept. 30, 2015, according to records of the Illinois Division of Professional Regulation.

He is being held in the Macon County Jail on a charge of theft by deception over $5,000, victims over 60 years old. He is due in court by Friday for his arraignment.