US Department Of Commerce Lists Obama Administration Successes

DEPARTMENT OF COMMERCE FACT SHEET:

Economic development in the wake of President Obama’s regulatory changes on exports and travel to Cuba

On December 17, 2014, President Obama announced that the United States would change its policies toward Cuba and move toward normalizing relations between the two countries. Since that announcement, departments and agencies have made a series of regulatory changes to allow for increased economic development in Cuba that will continue to empower the Cuban people and advance our enduring objectives of supporting human rights, improving the lives of the Cuban people, and promoting closer ties between our countries.

In October 2015, the Departments of Commerce and the Treasury launched the U.S.-Cuba Regulatory Dialogue. We have made several significant regulatory updates, including: eliminating certain restrictions on remittances, easing limits on exports to and certain imports from the Cuban private sector, facilitating trade in the telecommunication and agriculture sectors, making changes to facilitate authorized travel to the island, and authorizing certain U.S. companies to establish and maintain a business and/or physical presence in Cuba.

With the Administration’s new regulatory updates, the American business community is now permitted in certain areas to work directly with the Cuban private sector, empowering Cuban entrepreneurs on the island.

The following economic development is ongoing, in part, as a result of the Administration’s new regulatory framework and policy toward Cuba:

Examples of Ongoing Economic Development:

Airline expansion: The United States and Cuba in December 2015 reached an arrangement to re-establish regular, direct flights between the United States and Cuba for the first time in more than 50 years. U.S. carriers have applied to the Department of Transportation for an allocation of the new opportunities to provide scheduled flights, which will begin later this year. Thirteen U.S. carriers have applied to provide direct flights to Havana from 20 U.S. gateway cities, as well as one-stop flights from three additional U.S. cities. In addition, seven U.S. carriers have applied to provide scheduled flights to the other nine international airports in Cuba from five U.S. gateway cities. For more information about authorized travel to Cuba, including the 12 categories of travel permitted by statute, please visit the website of the Department of the Treasury’s Office of Foreign Assets Control (OFAC).

Airbnb: Through the new regulatory framework, Airbnb set up service for authorized U.S. travelers to stay in the homes of private Cuban hostel owners – in a year, listings have grown from 1,000 to well over 4,000. Airbnb’s operation empowers Cuban private homeowners and provides an opportunity for authorized US travelers to directly connect with the Cuban people

Carnival: Carnival will soon sign a deal that will allow its cruise ships to dock in Cuban ports and disembark authorized travelers. Carnival has begun selling tickets to authorized travelers for a May 1, 2016 cruise that will stop in Havana, Santiago, and Cienfuegos. The announcement will be made in the next two weeks.

Cisco: Cisco plans to open a Networking Academy in Cuba, in which Cuban students will learn how to set up IT networks and improve their technology skills with the aim of improving the development of a strong Information and Communications Technology (ICT) sector in Cuba.

Caterpillar: Caterpillar announced a $500,000 donation to the Finca Vigía Foundation, a U.S. non-profit working in collaboration with Cuban cultural preservationists and other donors to restore and preserve Ernest Hemingway’s home, documents, and historical artifacts in Cuba.

Cleber: Through the new regulatory framework, Cleber plans to set up a tractor manufacturing facility in Cuba. This would directly employ Cuban workers and produce much needed tractor equipment for agricultural production.

Colgate-Palmolive: Colgate-Palmolive implements its Bright Smiles program, which provides free dental care and dental hygiene products to children in Havana.

General Electric: GE plans to cooperate with the Cuban government on providing products related to aviation, healthcare, and energy products in Cuba.

Marriott: Marriott is seeking to establish a brand presence in the Cuban hospitality sector, while providing supportive career training for Cuban nationals and opportunities for emerging Cuban entrepreneurs to cater to hotel supply needs.

Norwegian Cruise Lines Ltd.: Norwegian Cruise Lines is working closely with the Cuban government to allow passengers to disembark at Cuban ports for educational and cultural excursions; under the new regulations, Norwegian plans to directly employ Cuban workers to assist with the excursions once approved by the Cuban government.

Starwood: Starwood Hotels & Resorts has signed two deals to operate luxury hotels in Havana and a third hotel catering to business travelers. These deals will provide comprehensive hospitality training to Cuban employees working in the hotels.

Stonegate Bank: In November 2015, Stonegate offered a Debit MasterCard card that can be used at the Point of Sale terminal at any of Cuba’s 10,000 hotels, restaurants, and other card-accepting merchants, relieving a significant burden for U.S. travelers.

Stripe: Stripe announced on Friday, March 18, 2016 that Stripe Atlas can now be accessed by Cuban entrepreneurs. This means access to an incorporated U.S. business entity; a U.S. bank account; and a Stripe account to receive payments from customers around the world and basic services they will need to start a business, including tax services from PwC and legal guidance from Orrick, Herrington & Sutcliffe LLP.

Roswell Park Cancer Institute: Roswell Park Cancer Institute in Buffalo, New York has a long-standing academic relationship with the Center for Molecular Immunology (CIM) in Cuba. Roswell Park plans to conduct preclinical research and clinical trials of a lung cancer vaccine developed in Cuba. The institute is about to open a clinical trial in the U.S. for the vaccine this summer.

Royal Caribbean: Royal Caribbean expects to receive official approval from the Cuban government to dock ships in Cuban ports; under the new regulatory framework, Royal Caribbean may allow authorized passengers to disembark and visit Cuba.

Weber Shandwick: Weber Shandwick is pursuing opening operations on-the-ground in Cuba and will proceed with discussions with the Cuban government about how to secure the permissions necessary to be among the first marketing services and global public relations firms to establish an office in Havana.

Wheels Up: Wheels Up operates a commercial airline service between the United States and Cuba for authorized travelers.

US Agricultural Coalition for Cuba (USACC): The USACC intends to advance a Cooperative Food and Agricultural Industry Agreement (CFAIA) between food producers, processors, and supply chain participants both in the U.S. and Cuba.

Verizon: Last week, the U.S.-based carrier Verizon and ETECSA, the Cuban telecommunications company, finalized an agreement for the direct exchange of wireline voice services between the two countries to enhance options for consumers and businesses of both countries.

Western Union: The Western Union Company, a leader in global payments services, announced on March 21, 2016 that it will launch remittance services from across the world into Cuba following U.S. regulatory and policy changes that allow Cubans and non-Cubans to send remittances via Western Union to this island nation.

NOAA Reports On Agreements With Cuba

U.S., Cuba agree on efforts to improve maritime navigation safety

March 21, 2016 Ambassador Jeffrey DeLaurentis, the Chief of Mission at the U.S. Embassy in Havana, and Col. Candido Alfredo Regalado Gomez, Chief of Cuba’s National Office of Hydrography and Geodesy (ONHG), have signed a Memorandum of Understanding to improve maritime navigation safety and related areas of mutual interest to protect lives and property at sea.

“NOAA has a strong interest in both improving navigational safety and in protecting the marine environment in the heavily travelled and vibrant waters between our two countries in the Straits of Florida,” said Russell Callender, Ph.D., assistant NOAA administrator for the National Ocean Service. “We welcome this agreement and the progress it represents.”

In addition to updating data on domestic charts like the NOAA chart above, the U.S. and Cuba agreed to work together on a new international paper chart, INT Chart 4149, which will cover south Florida, the Bahamas, and north Cuba. The memorandum of understanding between the two countries was signed last Friday in Havana.

In addition to updating data on domestic charts like the NOAA chart above, the U.S. and Cuba agreed to work together on a new international paper chart which will cover south Florida, the Bahamas and northern Cuba. (NOAA)

“Improved navigation services are important for commercial mariners and individual boaters alike,” said Ambassador DeLaurentis, “and it is particularly important as authorized trade and authorized travel increase between the two countries.”

The MOU calls for cooperation in the areas of hydrography, oceanography, geodesy and related services of mutual interest. One of the major focuses will be to improve maritime navigation safety including efforts to ensure the accuracy of both electronic and paper charts, eliminate charting overlaps and fill in gaps in navigational chart coverage.

“This MOU will allow us to fill gaps in essential navigational data, working on a practical level with our Cuban counterparts,” said Kathryn Ries, deputy director of NOAA’s Office of Coast Survey. “The U.S. works with hydrographic offices of all nations that have waters adjacent to the United States and our territories, and this agreement improves the exchange of charting information with Cuba as well.”

In February 2015, less than two months after President Obama announced the United States’ new approach toward Cuba, NOAA and ONHG, through a set of reciprocal exchanges, launched what became a year-long effort to formulate the technical exchange that is a normal course of affairs between most of the other maritime nations of the world. Both agencies are working on plans for monitoring and forecasting tides and currents for ports and improving positioning networks among other related scientific and technical activities.

The MOU is the first step in what is expected to be a long-term collaboration between the two countries.

In addition to aligning each country’s navigational charts, NOAA and ONHG are sharing data for the creation of a new international chart (known in mariner’s parlance as “INT chart”) 4149, which will cover south Florida, the Bahamas, and north Cuba. NOAA plans to publish the new chart this year.

NOAA’s Office of Coast Survey, originally formed by President Thomas Jefferson in 1807, maintains the nation’s nautical charts, surveys the coastal seafloor, responds to national maritime emergencies, and searches for underwater obstructions and wreckage.

NOAA’s mission is to understand and predict changes in the Earth's environment, from the depths of the ocean to the surface of the sun, and to conserve and manage our coastal and marine resources. Join us on Facebook, Twitter, Instagram and our other social media channels.

Cisco Systems To Establish Networking Academy In Havana

From Laura Quintana:

Today, we are pleased to announce that Cisco will begin a new relationship with the Universidad de las Ciencias Informaticas (UCI) of Cuba, with the intention of bringing the Cisco Networking Academy program to UCI students.

Networking Academy is an IT skills and career building program for learning institutions and individuals worldwide. It is the first program of its kind to launch in Cuba since restoration of diplomatic relations in December 2014. As part of the Letter of Intent signed by Cisco and UCI, Cisco intends to donate equipment and to provide a grant to train initial instructors at UCI and provide the necessary operational support.

I had the pleasure of visiting Cuba in the fall of 2015. The people were welcoming and warm, and excited about the opportunity to collaborate. Like every country, every city, and every business around the world, Cuba is approaching the challenge of digitizing its economy as an opportunity for its country and its citizens. I met with the UCI leadership team, and their work to accelerate technology-based startups and incubate software applications was impressive.

UCI is a leading national university specializing in software development, key to the digitization of Cuban society. Their mission is to train professionals who are committed to their homeland and highly qualified in the field of computer science. This corps of IT professionals will produce applications and services that are foundational to building Cuba’s technology industry.

It can’t be overlooked that two years ago, Cisco Networking Academy and UCI could not have formed this partnership, which is based on a mutual ambition to make technology education accessible to any student who wants to learn. Digitization is creating a need for true partnerships to solve technology challenges quickly and effectively.

Cisco Networking Academy aims to improve the IT and career skills of millions of people around the world. We accomplish this by delivering our curriculum through partnerships with government agencies; social benefit organizations; and academies in schools, colleges, universities, and communities centers. Over 1 million students worldwide participated in the Cisco Networking Academy program in 2015.

We are proud of the impact that Networking Academy has on students’ lives. In exit surveys of students completing courses through Cisco CCNA 4 or higher, over 90 percent of respondents reported that participating in Networking Academy led to job or educational opportunities including a new job, a better job or promotion, increased responsibilities, deciding on a program of study, or pursuing more education. Also, 94% indicated that the skills they learned were important for their jobs.

We are confident that our partnership with UCI will impact students’ lives in the country and will ultimately result in higher employment opportunities.

USDA Shifting From Passive To Aggressive Interpretation Of TSREEA

USDA Shifting From Passive To Agressive Interpretation Of TSREEA

In 2015, the United States Department of Agriculture (USDA) and United States Department of Commerce (DOC) reported that Republic of Cuba-related activities (and by extension the United States Government) were restricted and/or prohibited not be choice (policy), but law, by the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000, title IX, Public Law 106-387 [22 U.S.C. 7207(a)(1)] (TSRA).  In 2016, the United States Department of State including representatives of the United States business community in an official delegation to the Republic of Cuba, thus reinterpreting the 2015 positions of the USDA and DOC.  See Full Economic Eye On Cuba Text

§ 7207. Prohibition on United States assistance and financing
(a) Prohibition on United States assistance
(1) In general Notwithstanding any other provision of law, no United States Government assistance, including United States foreign assistance, United States export assistance, and any United States credit or guarantees shall be available for exports to Cuba or for commercial exports to Iran, Libya, North Korea, or Sudan.
(2) Rule of construction
Nothing in paragraph (1) shall be construed to alter, modify, or otherwise affect the provisions of section 6039 of this title or any other provision of law relating to Cuba in effect on the day before October 28, 2000.
(3) Waiver
The President may waive the application of paragraph (1) with respect to Iran, Libya, North Korea, and Sudan to the degree the President determines that it is in the national security interest of the United States to do so, or for humanitarian reasons.

Agriculture Secretary Vilsack Announces Historic Agreements for U.S.-Cuba Agriculture Sectors

HAVANA, March 21, 2016 - As part of President Obama's historic trip to Cuba to further normalization of relations, advance commercial and people-to-people ties, and express our support for human rights for all Cubans, Agriculture Secretary Tom Vilsack today announced several measures that will foster further collaboration between the U.S. and Cuban agriculture sectors. The two neighboring countries share common climate and agriculture related concerns, and the measures announced today in Havana will mutually benefit the Cuban people and U.S. farmers and ranchers.

While in Cuba, Secretary Vilsack announced that USDA will allow the 22 industry-funded Research and Promotion Programs and 18 Marketing Order organizations to conduct authorized research and information exchange activities with Cuba. These groups, which are responsible for creating bonds with consumers and businesses around the world in support of U.S. agriculture, will be able to engage in cooperative research and information exchanges with Cuba about agricultural productivity, food security and sustainable natural resource management. Secretary Vilsack called the announcement "a significant step forward in strengthening our bond and broadening agricultural trade between the United States and Cuba."

During their bilateral meeting today, Secretary Vilsack and Cuban Minster of Agriculture Gustavo Rodriguez Rollero will sign a Memorandum of Understanding that establishes a framework for sharing ideas and research between the two countries. Secretary Vilsack also has invited Minister Rodriguez to join on a visit to one of USDA's Climate Sub Hubs in Puerto Rico in late May, where USDA researchers are studying the effects of climate change in the subtropical region and strategies for mitigating these effects.

"Recognizing the importance of agriculture in the United States and Cuba, USDA is advancing a new partnership for the 21st century between our two countries," said Vilsack. "U.S. producers are eager to help meet Cuba's need for healthy, safe, nutritious food. Research and Promotion and Marketing Order Programs have a long history of conducting important research that supports producers by providing information about a commodity's nutritional benefits and identifying new uses for various commodities. The agreements we reached with our Cuban counterparts on this historic trip, and the ability for our agriculture sector leaders to communicate with Cuban businesses, will help U.S. agricultural interests better understand the Cuban market, while also providing the Cuban people with science-based information as they grow their own agriculture sector."

USDA will review all proposed Research and Promotion Board and Marketing Order activities related to Cuba to ensure that they are consistent with existing laws. Examples of activities that may take place include the following:

• Provide nutritional research and guidance, as well as participate with the Cuban government and industry officials, at meetings regarding nutrition and related Cuban rules and regulations.
• Conduct plate waste study research in schools to determine what kids eat and what they discard, leading to improved nutritional information that helps develop the guidance for school meal requirements, ensuring kids are getting adequate nutrition to be successful in school.
• Provide U.S. based market, consumer, nutrition and environmental research findings to Cuban government and industry officials.
• Research commodities' role in a nutritious diet that improves health or lowers the risk of chronic diseases.
• Study the efficacy of water disinfectants to eliminate/inactivate bacteria on commodities.
• Test recipes and specific products amongst Cuban consumers of all ages, with the goal of increasing product development and acceptance.
• Conduct consumer tracking studies to measure attitudes when it comes to a specific commodity and consumption and to identify consumer groups based on their behavior, attitudes, and purchasing habits for a particular commodity.

The visit to the Puerto Rico Sub Hub would allow USDA and Cuba's Ministry of Agriculture to exchange information on climate change as it relates to tropical forestry and agriculture, and explore opportunities for collaboration. The two officials would be able to explore tools and strategies to cope with challenges associated with climate change, such as drought, heat stress, excessive moisture, longer growing seasons, and changes in pest pressure.

The Puerto Rico hub is part of the USDA Regional Climate Hub network that supports applied research and provides information to farmers, ranchers, advisors, and managers to inform climate-related decision making. The hubs are an invaluable resource for those seeking to understand the specific risks of climate change, as well as region-specific adaptation strategies.

The agriculture and forestry sectors in the Caribbean are especially vulnerable to the effects of climate change. Not only is the region particularly exposed to extreme weather events, but much of its population and prime agricultural lands are located on the coast. The Puerto Rico Sub Hub is specifically focused on addressing these unique challenges and supporting the people and institutions involved in tropical forestry and agriculture.

While most U.S. commercial activities are prohibited, the Trade Sanctions Reform Act (TSRA) of 2000 permits the export of U.S. agricultural commodities, though U.S. agricultural exports to Cuba are limited by U.S. restrictions on government export assistance, cash payments, and extending credit. U.S. agricultural exports have grown significantly since trade was authorized in 2000. In 2014, Cuba imported over $2 billion in agricultural products including $300 million from the United States. However, from 2014 to 2015, U.S. agricultural exports to Cuba fell 48 percent to $148.9 million, the lowest since 2002, giving the United States just a 10 percent market share as Cuba's fourth largest agricultural supplier, behind the EU, Brazil, and Argentina.

This historic visit to Cuba is the first by a sitting U.S. President in nearly 90 years. It is Secretary Vilsack's second visit and is another demonstration of the President's commitment to chart a new course for U.S.-Cuban relations and connect U.S. and Cuban citizens through expanded travel, commerce, and access to information.

Western Union Expands Remittance Services To Cuba

For the first time Western Union to move money into Cuba from beyond U.S. borders

21 March 2016: ENGLEWOOD, Colo.--(BUSINESS WIRE)-- The Western Union Company (NYSE: WU), a leader in global payments services, announced today that it will launch remittance services from across the world into Cuba following U.S. regulatory and policy changes that allow Cubans and non-Cubans to send remittances via Western Union to this island nation.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20160321005381/en/

Western Union Expands in Cuba: Connects the world (Graphic: Business Wire)

For the first time, Cubans and other citizens worldwide will join their U.S. counterparts to send remittances into Cuba within minutes* using Western Union’s cross-border payments platform. The Company expects to activate services in a phased approach by end of second quarter 2016.

“As the first U.S. Company with scale to move money from across the world to Cuba, we welcome the regulatory and policy changes put in place by the U.S. government that allow us to offer these services,” said Odilon Almeida, President of the Americas and European Union.

Remittances can be sent to family members and other Cuban nationals for family expenses and personal support for private economic activity.

“It is a privilege to connect Cubans from almost anywhere in the world in a matter of moments to their home community, and it is even more historic to be associated with the anticipated economic multiplier that will come with new injection of remittance flows into Cuba,” Almeida lauded.

“As we have found in other parts of the world, expanding remittances will provide a vital opportunity to improve the standard of living for Cuban people, contribute to savings and eventually investment towards small-businesses.”

Funds moved by Western Union go directly from the sender to the receiver with no middle intervention. “This represents a powerful catalyst for empowerment and innovation. Our current movement of remittances from the U.S. to Cuba funds regular expenses and micro businesses, driving entrepreneurism, innovation and employment opportunities,” Almeida explains.

Western Union’s global experience has shown that when customers have formalized and convenient access, remittance flows thrive from established and new corridors. Access to convenient financial services in a globalized financial arena is important to the world’s increasingly mobile-workforce and it has proven to be as important to the economic advancement of a nation.

Remittance senders from across the world can expect the same in-minutes money transfer speed into Cuba with local currency payout. They can use Western Union’s omni-channel send options -- retail, digital, mobile or bank, where available -- to send money, and in Cuba receivers can pick-up their funds from more than 490 Agent locations across each of Cuba’s 16 provinces and 168 municipalities. This is a significant presence and it is represented by multiple classes of trade – from retail stores to exchange houses.

Background

The Cuban population outside of Cuba is pegged at 1.4 million as of 2015. They reside across North, South and Central America, the Caribbean, EU and CIS countries. Nearly 96% are concentrated in five countries including U.S., Spain, Italy, Mexico, and Canada. However, Cubans reside in as many as 72 countries1.

Cash remittances to Cuba in 2013 reached US$2.8 billion with 90% originating from the US. Remittances reach 62% of Cuban households, sustain about 90% of the retail market and provide thousands of jobs. #2

About Western Union

The Western Union Company (NYSE: WU) is a leader in global payment services. Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union Business Solutions branded payment services, Western Union provides consumers and businesses with fast, reliable and convenient ways to send and receive money around the world, to send payments and to purchase money orders. As of December 31, 2015, the Western Union, Vigo and Orlandi Valuta branded services were offered through a combined network of over 500,000 agent locations in 200 countries and territories and over 100,000 ATMs and kiosks, and included the capability to send money to over a billion accounts. In 2015, The Western Union Company completed 262 million consumer-to-consumer transactions worldwide, moving $82 billion of principal between consumers, and 508 million business payments. For more information, visit www.westernunion.com.

Priceline, Through Booking.com, To Offer Cuba Hotel Reservations

Booking.com Has Set the Stage to Become the First Digital Travel Brand to Launch Instantly Bookable Hotels in Cuba

Booking.com will soon make one of the world’s most coveted destinations accessible to U.S. travelers seeking beauty, culture and adventure

NEW YORK– MARCH 21, 2016 – Today Booking.com, the global leader in online travel and part of The Priceline Group [NASDAQ: PCLN], announced that it will become the first online U.S. travel brand to offer instantly bookable hotel properties for certain U.S. citizens traveling to Cuba, one of the world’s most sought-after destinations, globally. After months of work with the Cuban Authorities and local hotels, the first properties will be ready to book in the coming weeks on Booking.com.

The company’s move follows the recent loosening of restrictions for U.S. travelers to Cuba. The announcement means that Cuba will soon become instantly bookable for U.S. travelers that meet the criteria currently approved by the U.S. government for travel to Cuba. At the outset, properties will be available in Havana and consumers can book instantly and avoid the need to rely on a property owner to respond to and accept a travel request. Plans are in place to increase the number of properties in Havana and beyond daily to give U.S. travelers the incredible diversity of choice Booking.com is known for.

“Cuba is a beautiful, culture-rich country that many travelers are keen to visit,” says Todd Dunlap, Managing Director, Americas, Booking.com. “At Booking.com, we are on a constant mission to bring our customers everything they want to help them experience the world. With the news of the easing of U.S. travel restrictions, we began working immediately with the local Cuban government, tourism authorities and our local hotel partners to launch the first platform to allow travelers to book and confirm instantly with the click of a button. They have been great partners for us on this journey and we are thrilled to be able to facilitate new experiences for U.S. travelers.”

The Headline.... "The Revolution 57, Imperialists 0"

There exists no anticipated or created global drama with the visit by the President to the Republic of Cuba- this is not President Richard Nixon traveling to the People’s Republic of China to meet with Chairman Mao Tse-tung; nor is it President Ronald Reagan meeting in Iceland with Mikhail Gorbachev, General Secretary of the Communist Party of the U.S.S.R.. 

However, if Fidel Castro were President of the Republic of Cuba, a meeting between the President of the United States and Dr. Castro would be an event; arguments will be made as to whether a President Fidel Castro would have engaged as has his brother, successor President Raul Castro.

There is no doubt that former President Fidel Castro would welcome a meeting with President Obama; and no doubt that if politics would permit the spectacle, President Obama would meet with former President Castro…. One historical figure to another. 

For former President Castro, however, such a meeting could resemble a scene from the Neil Simon-scripted play which became the motion picture, “The Sunshine Boys.”  In one moment, one character recovering from a medical issue is visited by his comic partner… “Come all the way over here…. Come all the way over here…. You came, you apologized…”

However, whether President Obama meets with former President Fidel Castro [The White House said that he will not] is irrelevant to the narrative that will be created, and with increasing evidence, authenticated, by the government of the Republic of Cuba…. The Revolution Won.

There should be no surprise if the headlines on newspapers published throughout the Republic of Cuba, and in other countries conveyed the following impressions:

“The Revolution 57, Imperialists 0”

“Obama Comes To Apologize”

“Isolating The Revolution Did Not Succeed”

“Fidel & Raul Led Us To Victory”

“We Forgive You”

“It’s Not Over”       

The Republic of Cuba will continue to be less oversold and less undersold; its being perceived for what it is- a country in a somewhat perpetual transition, from identity to identity, seeking the balance between ideology that depends upon the largess of others to pay for it and the new reality that those supporters are fewer... and they now want to be repaid.

What Does Cuba Want... And Need... But May Not Receive For A While

What Does Cuba Want…… And Need... But May Not Receive For A While

Rescind relevant provisions:

Platt Amendment (Lease for Guantanamo Bay) of 1901
Trading With The Enemy Act of 1917
Cuban Democracy Act of 1992
Libertad Act of 1996
Trade Sanctions Reform And Export Enhancement Act of 2000
Cuban Assets Control Regulations (CACR)

Authorize United States companies and the government of the Republic of Cuba to access the following programs, which provide United States government payment guarantees to United States exporters and their customers.  However, given the payment record of the government of the Republic of Cuba to other countries, would United States companies and the United States government accept the risk of non-payment?:

United States Department of Agriculture (USDA)
Commodity Credit Corporation
Export Credit Guarantee Program
Facilities Guarantee Program

Export-Import Bank (ExIm)
Export Working Capital Program
Working Capital Guarantee Program
Loan Guarantee Program
Direct Loan Program
Finance Lease Guarantee Program

Overseas Private Investment Corporation (OPIC)
Direct Loans and Loan Guarantees

Small Business Administration (SBA)
Export Express Program
International Trade Loan Program

Important About Starwood's Presence In Cuba? Obama Administration Permits Contract With The Military

Important About Starwood’s Presence In Cuba?  Obama Administration Permits Contract With The Military

Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide, Inc., has been authorized by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury to sign a management contract with Revolutionary Armed Forces of the Cuba-controlled Grup de Turismo Gaviota SA.

The Obama Administration has recognized, acknowledged, that the military in the Republic of Cuba is in control of desired economic assets and sectors; and that the military in the Republic of Cuba is expected to remain in control of desired economic assets and sectors.

U.S. Clears Marriott to Engage in Business Development in Cuba

U.S. Clears Marriott to Engage in Business Development in Cuba

Company in Discussions to Pursue Hospitality Agreement

BETHESDA, MD and HAVANA, CUBA, March 20, 2016 – Marriott International, Inc. (NASDAQ:MAR) said today that the the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury has approved Marriott International’s application to pursue a business transaction in Cuba, and that the company is in discussions to develop a hospitality relationship with potential partners.  The announcement was made during President Obama’s historic trip to Cuba, marking the first time in more than 80 years a sitting U.S. president has visited the country.  Marriott President and Chief Executive Officer Arne Sorenson is traveling with U.S. Commerce Secretary Pritzker during the President’s visit to Cuba.

Marriott’s objectives in Cuba include entering the hospitality sector with Marriott brands, providing hospitality training for Cuban nationals, helping to generate new economic opportunities for businesses supplying the hospitality industry, and as a corporate citizen, supporting opportunities for youth, women and other communities in Cuba.    

Mr. Sorenson said, “We are gratified to receive permission from the U.S. government to pursue business opportunities in Cuba.  While there is still work to do before any agreement is reached, we are actively pursuing relationships in the hospitality sector. We have long been convinced that with the right frameworks in place, new economic opportunities, including dramatically expanded travel, abound in Cuba.  These could deliver real benefits to the Cuban people and also have the effect of bringing both Americans and Cubans closer together.”

Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda, Maryland, USA, with more than 4,400 properties in 87 countries and territories.  Marriott International reported revenues of more than $14 billion in fiscal year 2015. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, Bulgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and Moxy Hotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together comprise nearly 55 million members. For more information or reservations, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.

Starwood To Manage Three Hotels In Havana

Starwood Hotels and Resorts Announces Groundbreaking Expansion to Cuba

March 19, 2016

Becomes First Hospitality Company to Obtain U.S. Treasury Department Authorization to Operate In Cuba

Signs Two Agreements and Letter of Intent to Open Hotels in Havana in 2016

HAVANA--(BUSINESS WIRE)-- Starwood Hotels & Resorts Worldwide, Inc. (“Starwood”) (NYSE:HOT) today signed three new hotel deals in Cuba, marking the first U.S. based hospitality company to enter the market in nearly 60 years. This announcement follows receipt of authorization from the U.S. Treasury Department for Starwood to operate hotels in Cuba. Long-time Havana icon, Hotel Inglaterra, will join The Luxury Collection and Hotel Quinta Avenida will become a Four Points by Sheraton. Both hotels will undergo renovations before raising their new brand flags later in 2016. The Company also announced that it has signed a Letter of Intent to convert the famed Hotel Santa Isabel into a member of The Luxury Collection.

Thomas B. Mangas, Starwood’s Chief Executive Officer, said: “Starwood’s history of creativity, innovation, sustainability and being a first mover is core to who we are and what has made us a formidable competitor in the industry with a long, global lead. I am proud of our team who worked tirelessly to make today possible. With Cuba’s rich history, natural beauty and strong culture, there is no question the entire U.S. hospitality industry has watched Cuba with great interest, and we are thrilled to lead the charge and bring our sophisticated, high-end brands into the market at this inflection point.”

Kenneth S. Siegel, Starwood’s Chief Administrative Officer and General Counsel, added: “We are confident Starwood is the right partner to help write the next chapter of relations between Cuba and American business, and we moved quickly and enthusiastically to pursue opportunities following recent government actions. As we’ve seen throughout the world, our entry into new markets has a positive effect on local communities, preserving and protecting the culture and delicate ecosystems while improving employment opportunities, which were driving forces in our discussions.”

Hotel Signings

Jorge Giannattasio, Starwood’s Senior Vice President and Chief of Latin America Operations, said: “We are excited to add this sought-after destination to our growing Latin American and Caribbean portfolio, and offer our loyal guests more choice in this evolving market. Hotel conversions, like those we announced today, allow us to preserve history, architecture and culture while offering a unique branded experience. With our long-standing, locally based and highly experienced team in Latin America and the Caribbean, we look forward to welcoming guests to Cuba for many decades to come.”

Starwood has partnered with owner Gran Caribe to rebrand the renowned Hotel Inglaterra as a member of The Luxury Collection. A national landmark just steps from the Gran Teatro de La Habana in the heart of downtown Havana, the Inglaterra first opened its doors in 1875 and is home to the famed Gran Café el Louvre, which has hosted artists and travelers for over a century. Upon completion of the preservation and conversion projects later this year, the hotel will offer 83 rooms and reopen under The Luxury Collection banner.

Starwood has signed an agreement with Grupo de Turismo Gaviota S.A. , owner of Hotel Quinta Avenida in Havana’s Miramar district, to rebrand the hotel as Four Points by Sheraton Havana later this year. The hotel will cater to business travelers with approximately 186 rooms and state-of-the-art meeting facilities.

The Company also has signed a letter of intent with Habaguanex, owner of the famed Hotel Santa Isabel, to convert the nineteenth century colonial-style palace to a member of The Luxury Collection, pending U.S. Treasury Department approval. Situated on the Plaza de Armas and overlooking Havana Harbor, the Santa Isabel will offer Starwood guests a conveniently situated respite in the heart of Havana’s historic city center, with 27 rooms, including 11 suites.

Steps to Groundbreaking Announcement

On December 17, 2014, President Obama announced plans to normalize diplomatic relations between the United States and Cuba, and in August 2015, the U.S. Embassy in Cuba was reestablished. Then, last month, the U.S. and Cuba signed an agreement that provides U.S. airlines the opportunity to operate up to 110 daily roundtrip flights, which would resume commercial airline service between the two countries for the first time in more than 50 years and promises to vastly increase the number of Americans traveling to Cuba.

Keith Grossman, Senior Vice President and Deputy General Counsel of Starwood, concluded: “Through our discussions and due diligence, it became clear that Starwood was the right choice for its unique approach to hospitality, sustainability and design that would enrich the local communities and enhance the guest experience. We plan to cultivate local talent, provide career enriching opportunities, and locally source art, décor, food, and materials to ensure we deliver authentic experiences.”

Starwood was advised by D17 Strategies, a consulting firm providing strategic counsel to clients seeking to carry out Cuban trade, investment, travel, and exchanges permitted under new U.S. regulations.

About The Luxury Collection® Hotels & Resorts

The Luxury Collection® brand is comprised of world-renowned hotels and resorts offering unique, authentic experiences that evoke lasting, treasured memories. For the global explorer, The Luxury Collection offers a gateway to the world's most exciting and desirable destinations. Each hotel and resort is a unique and cherished expression of its location; a portal to the destination's indigenous charms and treasures. Originated in 1906 under the CIGA® brand as a collection of Europe's most celebrated and iconic properties, today The Luxury Collection brand is a glittering ensemble, set to exceed 100 of the world's finest hotels and resorts in more than 30 countries by the early 2016. All of these hotels, many of them centuries old, are internationally recognized as being among the world's finest. For more information and new openings, visit theluxurycollection.com or follow Twitter, Instagram and Facebook.

About Four Points

Four Points is travel reinvented. With over 200 hotels in nearly 40 countries, Four Points meets the needs of the everyday traveler and offers guests exactly what they need on the road. Four Points combines timeless style and comfort and an authentic sense of the local as well as genuine, always-approachable service, all around the world. To learn more, visit www.fourpoints.com/experience. Stay connected to Four Points on facebook.com/fourpoints.

About Starwood Hotels & Resorts Worldwide, Inc.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with nearly 1,300 properties in some 100 countries and approximately 188,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences under the renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Tribute Portfolio™, Four Points® by Sheraton, Aloft®, and Element®, along with an expanded partnership with Design Hotels™. The Company also boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG®). Visit www.starwoodhotels.com for more information and stay connected @starwoodbuzz on Twitter and Instagram and facebook.com/Starwood.

DHS To Expand Airport Gateways To Cuba

WASHINGTON—The Department of Homeland Security will publish a regulation in the Federal Register Monday, March 21, which includes a change to current travel regulations regarding flights to and from Cuba. As part of this regulatory change, U.S. Customs and Border Protection will immediately remove Subpart O from the current regulations in 19 CFR Part 122.

Under Subpart O, only CBP-approved airports could accept flights traveling to or from Cuba. Airports hoping to accommodate travel to or from Cuba were required to submit a written request to CBP for approval. The written request was required even if the airport already had clearance for international flights.

Besides removing 19 CFR Part 122, Subpart O, the regulatory change also makes adjustments to other provisions which mentioned Subpart O. Flights to and from Cuba are now subject to the same legal requirements under Title 19 as other international flights.

All passengers arriving from Cuba must still complete their immigration and customs inspections prior to being admitted into the United States.

Additionally, the removal of Subpart O of 19 CFR Part 122 does not have any impact upon any other federal agency, carrier or traveler requirements that may be relevant for flights to and from Cuba. An internal review of CBP’s regulations showed no benefits to the agency by continuing to enforce 19 CFR Part 122, Subpart O.

The interim final rule is effective immediately, although CBP will receive public comments on the rule through April 20, 2016.  Public comments can be submitted and viewed on Regulations.gov.

The U.S. Department of State and the U.S. Department of Transportation signed an arrangement with Cuba in February 2016 aimed at re-establishing scheduled flights between the U.S. and Cuba.

For further information, visit DHS.gov.

Does The Obama Administration Want Regime (Behavior) Change? Yes, It Does.

Does The Obama Administration Want Regime Change? Yes, It Does.

The Obama Administration may not specifically want “regime change” to be defined as seeking to replace those who are in the leadership of the Republic of Cuba, but the President does want to change the behavior of those guiding the country of 11.3 million citizens ninety-three miles south of Florida.

It's a soft war… using visitors as the soldiers, commercial airlines as the air force, and cruise ships as the navy.  United States diplomats as the marines.

While President Obama's fifteen-month-and-counting commercially-focused five-act (thus far) regulatory drag race is not nearly at the finish line, there has been at least one significant parallel political shift by the government of Cuba- it has been forced to adapt to the materially impactful irreversible influence that the re-emerging middle class is having on Cuban society.  Approximately 10% of the Republic of Cuba’s official workforce of 5.1 million are registered as Licensed Entrepreneurs.

Reconstituting the middle class that was abridged as a result of the 1959 Revolution is a foundational fulcrum upon which much of President Obama's Cuba strategy has been based since December 2014.

While the government of Cuba commenced changes to the self-employed categories (201+) and acknowledged a need for a reduction in the government payroll prior to President Obama's initiatives announced in December 2014, there are now additional pressures from within for structural changes to the ideological foundation of the country. 

Ironically, these pressures are partly a result of Cuba's outreach in 2015 to the international community- Paris Club of Creditor Nations, governments, companies, financial institutions... because in order for those renewed and new areas of support to be repaid, Cuba must do more than reform the commercial and economic sectors of the country; it must aggressively reform and redefine the "Revolution."

In 2016 and beyond, the Revolution will be defined less by what is desired as by how much there is to spend to support it; the traditional sources of support, the USSR (long gone), Russia (lessening), China (retaining its connection), and Venezuela (lessening) are no longer reliable.  Important to note that the Russian Federation and China view somewhat their outreach to the Republic of Cuba as having a dual result- commerce and annoying the United States.

Cuba has looked as it does primarily because others paid for it... Those customers are no longer as interested and the customers that replaced them are investing for a return of cash, not slogans.

What does this mean for United States-based companies?  The government of the Republic of Cuba will create opportunities to “showcase” its “willingness” to engage with, respond to, the Obama Administration initiatives.  But, that showcase will be small to medium in size and it will be moveable and it will be breakable. 

There will be an effort by the government of the Republic of Cuba to retain the distance between aspiration and operation; by authorizing just enough on-the-ground activity so as to not to render dry the salivary glands of executives from United States companies; as the government of the Republic of Cuba requires those vocal abilities to advocate on their behalf in Washington for additional regulatory and statutory changes preventing an unrestricted North-to-South and South-to-North commercial landscape. 

The President's Schedule In Cuba

On Sunday, in the afternoon, the First Family will travel to Havana, Cuba. While in Cuba, the President will work to build on the progress we have made toward normalization of relations with Cuba - advancing commercial and people-to-people ties that can improve the well-being of the Cuban people, and expressing our support for human rights.

Later in the afternoon, the First Family will arrive in Havana, Cuba.

Following the First Family’s arrival, the President and the First Lady will meet with Embassy personnel and families.

Afterward, the President and First Lady will take a walking tour of Old Havana.

The First Family will remain overnight in Havana, Cuba.

On Monday, the President will participate in a wreath laying ceremony and take a tour of the Jose Marti Memorial. Later in the morning, the President will then take an official photo with President Raul Castro of Cuba and participate in an official welcoming ceremony at the Palace of the Revolution. Afterward, the President will hold a bilateral meeting with President Castro. In the afternoon, the President will take part in an event focused on entrepreneurships and opportunity for the Cuban people. In the evening, the President and First Lady will attend a state dinner at the Palace of the Revolution.

On Tuesday, the President will deliver remarks to the people of Cuba at the Gran Teatro de La Habana Alicia Alonso. Later in the morning, the President will meet with members of civil society. Following the President’s meeting, the First Family will attend a Major League Baseball exhibition game between the Tampa Bay Rays and the Cuban National Team at the Estadio Latinoamericano. Americans and Cubans share a love of baseball, and this is yet another powerful reminder of the kinship between our peoples as well as the progress we can achieve when we leverage those natural ties. In the afternoon, the First Family will depart Havana, Cuba and travel to Buenos Aires, Argentina where they will remain overnight.

California-Based Stripe To Provide U.S. Operational Access For Cuban Entrepreneurs

Atlas + Cuba

Patrick Collison on March 18, 2016

Since the 1960s, the U.S. has maintained a trade embargo with Cuba. Today, more than half a century later, many of these restrictions are gradually being lifted. At Stripe, we stand for increasing global commerce and enthusiastically support this action.

The embargo has many components, among the most significant being the Office of Foreign Asset Control’s restrictions on access to financial services by Cuban nationals. On Tuesday, these were some of the first restrictions to be relaxed by the White House. This removes one of the biggest impediments to Cubans participating in the global financial system.

It also removes one of the biggest barriers to entrepreneurship in Cuba. The restrictions on access to financial services have made it extremely tough for Cuban developers and founders to start new businesses or to work with U.S. investors or partners. Despite this, more than 70% of Cubans say that they’d like to start a business. In his upcoming historic trip—the first by a sitting U.S. president in 88 years—President Obama will meet Cuban entrepreneurs to learn "how we can help them start new ventures."

When the White House reached out to us about the role Stripe might play in this process, we jumped at the idea. As of today, Stripe Atlas will be available to entrepreneurs in one of the only countries it didn’t previously serve: Cuba.

Stripe Atlas is a new product for us—we announced it less than a month ago. It’s based on our belief that there exist individuals with the ability to be successful entrepreneurs everywhere and that the important tools for internet entrepreneurship should be available to everyone. With Atlas, we aim to offer best-in-class tools to founders no matter where they’re based—from Cambodia to (now) Cuba.

Thanks to Tuesday’s changes, we’ll be working as quickly as possible with our partners, including Silicon Valley Bank, to enable Cuban entrepreneurs to easily incorporate U.S. companies, set up U.S. bank accounts, and use Stripe to start accepting payments from customers around the world. There are more details in our guide about how it works.

Cuban entrepreneurs can apply for access immediately and we plan to send the first invitations soon. We’re also extending the Stripe Atlas network to Cuba and we’re delighted to start out by partnering with Merchise Startup Circle in Havana.

Since we announced Atlas, businesses from more than 185 countries have already applied for access. We’re excited to make that 186.

U.S. Coast Guard Removes Conditions Of Entry On Vessels Arriving From Cuba

March 17, 2016

U.S. Coast Guard Headquarters
Contact: Headquarters Public Affairs
Office: (202) 372-4630

US Coast Guard removes Conditions of Entry on vessels arriving from Cuba

WASHINGTON — The U.S. Coast Guard announced the removal of Conditions of Entry on vessels arriving from Cuba, Thursday.

Following a comprehensive assessment, the United States Coast Guard has determined that Cuba meets the International Ship and Port Facility Security (ISPS) Code requirements established by the International Maritime Organization (IMO) and has effective security measures in their ports. Vessels arriving to the U.S. are no longer required to employ additional security measures while in Cuban ports.

Conditions of Entry related to Cuban ports were originally imposed in 2008.

All U.S. immigration policies remain unchanged and the Office of Foreign Assets Control travel restrictions remain in effect. Furthermore, the governing regulations titled “Unauthorized Entry to Cuba” contained in 33 CFR 107.200 also remain in effect.

The full notice on the removal of these conditions of entry will be published in the Federal Register.

Have Consultants Become Tour Guides Rather Than Business Guides?

Have Consultants Become Tour Guides Rather Than Business Guides?

Does this sound familiar: Visits to the Ministry of Foreign Affairs, Ministry of Foreign Trade and Foreign Investment, Chamber of Commerce, Port of Mariel, and United States Embassy?

This is the most frequent itinerary that a proliferation of consultants has followed for their clients when visiting the Republic of Cuba.

An increasing number of individuals who are or have engaged in Republic of Cuba-related political advocacy (as sole proprietors, lobbyists, employees of not-for-profits, affiliated with educational institutions, etc.) or as professional researchers (for not-for-profit entities) have departed those venues to reinvent themselves as “Cuba consultants,” eager, for a price, to be engaged by individuals and entities that wish to visit the Republic of Cuba to identify commercial opportunities.

Some of the them are enticed by the knowledge that two United States governors spent US$25,000.00 in their respective taxpayer funds to pay a "Cuba Country Expert" at a not-for-profit organization when all of the expertise (and logistical support) was available at no cost through the government of the Republic of Cuba, Republic of Cuba government-operated entities, and other entities (for profit and not-for-profit).

The challenge for some of the newly-minted self-proclaimed Cuba consultants is they have no knowledge or have limited knowledge of the private sector and for many their ability to function within the Republic of Cuba is solely based upon having been a political advocate- so they need to maintain positive working relationships with their Republic of Cuba hosts which may diverge from the interests of their clients- who are generally visiting the Republic of Cuba once. 

Their relationships are often hostage to having never disagreed with, had to negotiate with, had to confront, made a public comment, prevailed in a decision that was disagreed with by the government of the Republic of Cuba.

These individuals have become tour guides; repeatedly introducing clients to the same representatives of the government of the Republic of Cuba with clients gaining questionable value. 

Of value to remember that the government of the Republic of Cuba is not supportive of consultants- as it prefers a straight line between it and a company rather than a triangle created by the insertion of a third-party.  That’s what the Embassy of the Republic of Cuba, with a Commercial Counsellor, located in Washington, DC, is officially designated to do for United States-based companies.

Of value to remember the tangible commercial results from the visits to the Republic of Cuba of more than four hundred representatives from United States companies, four United States governors, seventeen United States Senators, and thirty-three members of the United States House of Representatives who visited the Republic of Cuba in 2015 and thus far in 2016.

New U.S. Commerce Department Regulations

On December 17, 2014, the President announced a historic new approach in U.S. policy toward Cuba. This approach recognized that increased engagement and commerce benefits the American and Cuban people, and sought to make the lives of ordinary Cubans easier and more prosperous. On January 16, 2015, the Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) to create License Exception Support for the Cuban People (SCP), which authorizes the export and reexport, without a license, of certain items to, among other objectives, improve the living conditions of the Cuban people (see 80 FR 2286). The rule also made other changes to license exceptions and licensing policy. Id.

On July 22, 2015, BIS published a rule implementing the May 29, 2015, rescission of Cuba's designation as a state sponsor of terrorism (see 80 FR 43314). That rule expanded certain license exception availability for exports and reexports to Cuba, including making general aviation aircraft eligible for temporary sojourns to Cuba.

On September 21, 2015, BIS published a rule to enhance support for the Cuban people (see 80 FR 56898). This rule expanded the scope of transactions that are eligible for License Exception SCP and made certain vessels on temporary sojourn to Cuba eligible for a license exception.

On January 27, 2016, BIS published a rule that amended the licensing policy in § 746.2 of the EAR to add a general policy of approval for certain exports and reexports previously subject to case-by-case review and a policy of case-by-case review for exports and reexports of items not eligible for License Exception SCP to meet the needs of the Cuban people, including exports and reexports made to state-owned enterprises and agencies and organizations of the Cuban government that provide goods and services to the Cuban people, subject to certain restrictions (see 81 FR 4580).

Today, BIS is taking this action in coordination with the Department of the Treasury, Office of Foreign Assets Control (OFAC), which is amending the Cuban Assets Control Regulations (31 CFR part 515).

This rule revises License Exception Aircraft, Vessels and Spacecraft (AVS) in § 740.15 to authorize transit through Cuban territory of cargo, laden aboard a vessel on temporary sojourn to Cuba, that is destined for other countries rather than require a license for that cargo to transit Cuban territory provided that such cargo departs with the vessel at the end of its temporary sojourn, does not enter the Cuban economy and is not transferred to another vessel while in Cuba. This change allows for efficient use of vessels that carry cargo from the United States to Cuba and to other countries and allows exporter carriers to select efficient routes. This rule also adds a note reminding readers to consult Coast Guard regulations on unauthorized entry into Cuban territorial waters.

This rule revises License Exception SCP to authorize export or reexport of EAR99 items and items controlled on the Commerce Control List only for anti-terrorism reasons for use by persons authorized to establish and maintain a physical or business presence in Cuba by the Department of the Treasury, Office of Foreign Assets Control pursuant to 31 CFR 515.573 or pursuant to a specific license issued by OFAC. Prior to this rule, License Exception SCP enumerated the activities for which OFAC had authorized such physical or business presence by general license. Simultaneously with the publication of this rule, OFAC is publishing an amendment to 31 CFR 515.573 to authorize additional persons subject to U.S. jurisdiction to establish a business and physical presence in Cuba. BIS's intent is to authorize by license exception the export and reexport of items needed to establish and maintain a physical or business presence in Cuba, to all persons authorized by OFAC to have such a presence. The simplest way to do this is to reference the applicable section in OFAC's Cuban Assets Control Regulations (“CACR”), i.e., 31 CFR 515.573 and specific licenses issued by OFAC rather than to revise the EAR to repeat any changes made to that CACR section.

This rule also revises EAR licensing policy regarding Cuba to adopt a policy of case-by-case review of license applications to export or reexport items that will enable or facilitate exports from Cuba of items produced by Cuba's private sector. BIS is adopting this policy to reinforce the Cuba case-by-case licensing policy adopted prior to this rule, which focuses on exports and reexports that would be used in ways that meet the needs of the Cuban people. Enabling or facilitating exports of items produced by the Cuban private sector, under certain circumstances will also help meet the needs of the Cuban people and is consistent with the Administration's policy of supporting the ability of the Cuban people to gain greater control over their own lives and determine their country's future. However, BIS will conduct the case-by-case review consistent with the policy standard set forth in § 746.2(b)(3)(i) of the EAR, which provides that “BIS generally will deny applications to export or reexport items for use by state-owned enterprises, agencies, and other organizations that primarily generate revenue for the state, including those engaged in tourism and those engaged in the extraction or production of minerals or other raw materials. Applications for export or reexport of items destined to the Cuban military, police, intelligence or security services also generally will be denied.”

This rule revises Note 1 to § 746.2(b)(3)(i) of the EAR, which describes a condition that will generally be included on licenses to prohibit reexport of the items authorized by the license or use of those items to enable or facilitate exports from Cuba. The revision makes clear that the condition applies to reexports from Cuba or uses that enable or facilitate exports from Cuba that primarily generate revenue for the state. BIS is making this change because enabling or facilitating exports of items produced by the Cuban private sector under certain circumstances will help meet the needs of the Cuban people and is consistent with the Administration's policy of supporting the ability of the Cuban people to gain greater control over their own lives and determine their country's future.

This rule revises § 736.2(b)(8) of the EAR, which prohibits shipments from transiting certain destinations, to explicitly state that the prohibition does not apply if a license or license exception authorizes the in-transit shipment.

This rule revises § 740.15(d)(6) of the EAR to authorize temporary sojourn to Cuba of a vessel carrying cargo destined to other countries provided that such cargo departs with the vessel at the end of its temporary sojourn to Cuba, does not enter the Cuban economy and is not transferred to another vessel while in Cuba.

This rule revises § 740.21(e) to remove the individual references to categories of persons authorized by OFAC to establish and maintain a physical or business presence in Cuba pursuant to 31 CFR 515.573, and to authorize exports and reexports to all such persons and to persons whose physical or business presence is authorized by a specific license issued by OFAC.Show citation box

This rule revises § 746.2(b)(3)(i), to add a paragraph (b)(3)(i)(D), which sets a policy of case-by-case review of items that will enable or facilitate export from Cuba of items produced by the Cuban private sector. It also revises Note 1 to clarify that the license condition described therein is intended to preclude use of items authorized by licenses bearing that condition from being reexported from Cuba or being used to enable or facilitate exports from Cuba that primarily generate revenue for the state.

BIS is making these changes to facilitate further support of and engagement with the Cuban people.

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United States Postal Service Commences Operations To Cuba

United States Postal Service Resumes Mail Service to Cuba

First Direct Transportation of Mail Service to Cuba in More Than 50 Years

WASHINGTON — Today the United States Postal Service announced it resumed direct transportation of mail service with Cuba for the first time in more than 50 years.

"The U.S. Postal Service is pleased to participate in the historic direct transportation of mail service with Cuba," said Postmaster General and CEO Megan J. Brennan. "Moving letter mail and package volume directly between our countries will improve service for businesses and consumers."

The types of mail customers in the U.S. can send to Cuba include First-Class Mail International items, such as postcards and letter size envelopes, First-Class Package International Service items, Priority Mail International Flat Rate Envelopes and Priority Mail International Small Flat Rate Priced Boxes. A comprehensive list of mailing conditions to Cuba can be found in the International Mail Manual at: http://pe.usps.gov/text/imm/ce_017.htm#ep1416554.

NOTE: The three-times-per week flights carry up to 6,000 pounds and are operated by Fort Lauderdale-based IBC Airways using a Saab 340A aircraft