Cuba Issues 175 Pages Of Regulations For Micro, Small And Medium-Sized Enterprises (MSME's)

Radio Cadena Agramonte
Camaguey, Republic of Cuba
20 August 2021

Regulations on small and medium-sized enterprises in Cuba are published

Havana, Aug 20.- Cuba today issued regulations related to the activities that micro, small and medium-sized private companies, non-agricultural cooperatives, and self-employed workers can carry out. 

The Official Gazette publishes Decree-Law 46 signed by the president of the National Assembly of People's Power, Juan Esteban Lazo Hernández, this Thursday , its purpose is to regulate the creation and operation of micro, small and medium-sized enterprises (MIPYMES).  

The legal norm highlights that MSMEs are those economic units with legal personality, which have their own dimensions and characteristics, and whose purpose is to develop the production of goods and the provision of services that meet the needs of society. These can be state, private or mixed property, and are classified depending on the number of employed persons as: Micro enterprise, whose range of employed is from one to 10 persons; Small business, from 11 to 35, and Medium business, from 36 to 100 people. 

Stresses that MSMEs have business autonomy; they contract goods and services with the other subjects recognized in the current legislation with equal conditions, and provide statistical information as provided by law. In addition, they can export and import in accordance with the provisions of current legislation; manage and administer your assets; define the products and services to be marketed, as well as their suppliers, clients, destinations and market insertion; operate bank accounts and access any lawful source of financing; set the prices of its services and goods except those that are centrally approved. 

Define its structure, staff and number of workers; determine the income of its workers respecting the established minimum wages; make the investments required for the development of the MIPYME; create establishments that do not have legal personality, inside or outside the province where their registered office is located; and another faculty or right that derives from its condition of company, as long as it does not oppose what is legally established. Regarding the activities to be carried out by micro, small and medium-sized private companies, non-agricultural cooperatives and self-employed workers, Decree 49 states, which are those considered legal, except those that are regulated in the list of unauthorized activities, annexed to that regulation.   

Unauthorized activities include pest control, except domestic pest control; ordinary hunting and trapping for commercial purposes, and mining and quarrying. Within the manufacturing industry, the production of sugar, natural mineral waters and tobacco is not authorized; the printing of newspapers, magazines, tabloids, books, maps, atlases, postage stamps, tax stamps, title documents, checks and other guarantee documents, except for products associated with the promotion of commercial activity. Manufacture of arms and ammunition; of military insignia; of cells, batteries and accumulators; of motor vehicles; of ships, floating structures, recreational and sports boats, as well as other boats; as well as repair and maintenance of firearms and ammunition, among others. 

The creation of record labels, music publishers and entities for the commercialization of records and other phonographic supports are not authorized, except for the activities of recording and post-production of sound and licenses for record sellers already approved; radio transmissions; television programming and broadcasts, on the cultural programming of music, performing arts, books, plastic arts, cinema, heritage and community cultural work; as well as wireline, wireless and satellite telecommunications activities that include the public internet access service. The annex to the regulations also includes other unauthorized activities in activities of extraterritorial organizations and bodies; of services; artistic, entertainment and recreational; human health care and social assistance; teaching; real estate; professional, scientific and technical; as well as administrative and support services, among others. (Text and infographic: ACN) 

LINK To Gaceta Oficial Document (175 Pages In Spanish)

Recent Related Analyses 

Healthcare Crisis In Cuba Provides Additional Questions And Opportunities For Biden-Harris Administration To Address Electronic Remittance Transfers... And Do So Practically August 19, 2021

Binary: Electronic Remittance Transfer Decision For Biden Administration And Diaz-Canel Administration; And Putting US$20 Million Into Perspective August 12, 2021

Defining "Transformative"- Cuba Ratifies Decree-Law Authorizing SME's: Micro (1-10 employees), Small (11-35 employees), Medium (35-100 employees). The Private Sector Has Returned.August 07, 2021

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If A Product Costs At Least 2,500 Pesos (US$104.16), Customers In Cuba Now May Obtain Financing: Terms Are 2.5% Interest With 20% Down July 24, 2021

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DHS Secretary Mayorkas Visits Florida. Refuses To Answer Question Could Signal Biden Administration Considering Cuba Military Participation In Remittance Delivery

The Honorable Alejandro Mayorkas was sworn in as Secretary of the Department of Homeland Security (DHS) by President Joe Biden on February 2, 2021. Secretary Mayorkas is of Cuban descent.

Politico
Arlington, Virginia
19 August 2021

Excerpts: “Mayorkas was tight-lipped with reporters about the future of U.S.-Cuba policy. Asked why Biden’s policies so far looked less like those of President Obama, Biden's former boss when he was vice president, and more like the Trump policies that Biden had once pledged to scale back, Mayorkas wouldn’t say. "The Biden-Harris administration will develop its policy toward Cuba in support of the Cuban people with the Cuban-American community," he replied. Biden's Homeland Security secretary also said he would not comment on whether he supports efforts to prevent money from flowing directly or indirectly to the Cuban military, which controls the island’s economy — the heart of Trump’s Cuba policy.

Remittance Background

Electronic remittance transfers arriving to the Republic of Cuba are processed by, delivered through, and create benefit for the government of the Republic of Cuba primarily through Revolutionary Armed Forces (FAR) of the Republic of Cuba-connected Grupo de Administración Empresarial S.A. (GAESA) which controls Republic of Cuba government-operated Banco Financiero Internacional S.A. (BFI), Republic of Cuba government-operated Financiera Cimex (Fincimex) and Republic of Cuba government-operated American International Services (AIS).    

Perhaps, the Biden-Harris Administration (2021- ) is considering solely for the processing and delivery of electronic remittance transfers to authorize BFI, Fincimex, and AIS which are on the Cuba Restricted List (CRL) maintained by the United States Department of State. And limiting the percentage the three entities may collectively receive (currently less than 2% combined which is in line with global marketplace norms) and using direct correspondent banking to make the transactions direct rather than through third countries thus ensuring greater transparency. The Cuba Remittance Working Group (CRWG) is to deliver its recommendation(s) to The White House by 29 August 2021.

Twitter Feed From DHS

Secretary Alejandro Mayorkas @SecMayorkas Meeting with the Haitian American community in Miami again today, I expressed the Biden-Harris Administration’s steadfast commitment to ensuring the safety and well-being of Haitians as the country faces one tragedy after another.

Today in Miami, @SecMayorkas is joined by Juan Gonzalez, @WHNSC Sr. Director for the Western Hemisphere, and Mark Feierstein, Principal Advisor to @PowerUSAID, for engagements with the Cuban American and Haitian American communities.

The Biden Administration stands in solidarity with the Cuban people and their call for freedom. I join @POTUS in our commitment to holding the Cuban regime accountable, supporting the Cuban people, and ensuring Cuban Americans remain a vital partner in our efforts.

Secretary Alejandro Mayorkas @SecMayorkas I am on my way to Miami, where I will meet with both the Cuban American and Haitian American communities. I will also have the chance to pay my respects to the #Surfside victims, and thank dedicated Miami-Dade first responders.

The White House
Washington DC
28 January 2021


Press Briefing by Press Secretary Jen Psaki

”Q And if I may ask one more on Cuba: Do you guys plan on starting -- walking back all of those restrictions that were put into place under the Trump administration after the Obama administration had opened things up with Cuba?”

”MS. PSAKI: Well, our Cuba policy is governed by two principles. First, support for democracy and human rights. That will be at the core of our efforts. Second is Americans, especially Cuban Americans, are the best ambassadors for freedom in Cuba. So we'll review the Trump administration policies, as we are in a number of other areas of national security, with an eye to assure -- ensuring that our approach is aligned with that. But, you know, we will take our own path. I don't I don't have anything to predict for you at this point in time.”

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Healthcare Crisis In Cuba Provides Additional Questions And Opportunities For Biden-Harris Administration To Address Electronic Remittance Transfers... And Do So Practically Aug 19, 2021

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Biden-Harris Administration Confirms Cuba "Remittance Working Group" Has No Private Sector Members Aug 12, 2021

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Defining "Transformative"- Cuba Ratifies Decree-Law Authorizing SME's: Micro (1-10 employees), Small (11-35 employees), Medium (35-100 employees). The Private Sector Has Returned. Aug 7, 2021

Cuba Links Resumption Of Remittances From United States To Expanding Investment Opportunities For Cuban Residents Abroad Aug 6, 2021

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European Union Member France's CMA CGM S.A. Is 41st Company Sued Using Libertad Act- Shipping To Cuba Through Jamaica And Using Port Mariel Aug 3, 2021

American Airlines Survives: Judge Quotes John Adams. Libertad Act Lawsuit Dismissed- Plaintiff Has Standing, But Inheritance Came Too Late. Aug 3, 2021

Judge In Libertad Act Lawsuit Against Seaboard Marine Dismisses 17 Plaintiffs; Remaining Plaintiff Wins Rulings- They Own The Property. Seaboard Trafficked And Knew It Was Trafficking. Settlement? Jul 31, 2021

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Miami Herald: "Feds seized $2.7 million in cash from Florida travelers. There’s just one reason why" And Much Going To Cuba

Miami Herald
Miami, Florida
19 August 2021

Feds seized $2.7 million in cash from Florida travelers. There’s just one reason why

By Ariana Aspuru and Jay Weaver

Last year, $2.7 million in bulk cash was seized at Florida airports and ports. That’s a big uptick from 2020 federal seizures of $2 million in Florida, according to U.S. Customs and Border Protection.  

Before boarding his flight in May from Fort Lauderdale to Panama, Lisandro Cadenas claimed he was only traveling with $3,000.  U.S. Customs and Border Protection officers asked him both in English and Spanish to confirm how much money he was carrying, according to court documents. Again, Cadenas said $3,000. 

When the customs officers searched his belongings, however, they found bundles of cash stashed in multiple places, including the front pocket of his jeans and in a handkerchief of a man’s purse. When the officers finished searching Cadenas, a lawful U.S. resident of Cuban descent, they counted more than $29,000 on him, according to a criminal complaint and affidavit. Cadenas, who faces federal trial at the end of August on charges of bulk-cash smuggling and making a false statement, lost all his money because he was required to declare it under U.S. law.  

Customs officers seized his cash — a haul that added to more than $2.7 million that was confiscated from U.S. and foreign travelers who didn’t legally declare the money at Florida airports and ports this fiscal year, which ends next month. That’s a big uptick from 2020 federal seizures of $2 million in Florida, according to U.S. Customs and Border Protection. 

Federal law states that travelers can bring as much money as they want when they travel in or out of the country, but they need to declare anything over $10,000 to U.S. Customs and Border Protection. Travelers who fail to declare their funds risk getting the money taken away by customs officers — but the seizure statistics suggest more people still try to slip big wads of cash past federal agents.  

In March, a Cuban couple was stopped at Miami International Airport by customs officers before boarding a Swift Air flight to Cuba.  Miguel Angel Del Rosario and Rachel De La Caridad Garcia declared they were carrying $8,000 in cash on the trip, but then only produced $5,104 when asked to show the funds in their two suitcases and two carry-on bags, according to a criminal complaint and affidavit. The customs officers searched their luggage and found a total of $105,469 hidden in their clothes. The couple’s money was seized, and they pleaded guilty to bulk-cash smuggling in June. They face sentencing in September. 

In Florida, Miami International Airport, recognized as a hub for cash, contraband and drug smuggling, ranks among the top five in the United States for federal seizures of money from travelers who don’t legally declare it — a sum totaling $91.5 million at MIA between 2000 and 2016, according to a report by the Institute for Justice, a Virginia-based law firm that specializes in efforts to recover civil forfeitures by the government.

The airport seizure report, based on statistics from a Treasury Department’s forfeiture database, focuses on travelers whose money was taken by Customs and Border Protection officers. Their typical crime: a failure to file required paperwork, FinCEN Form 105, declaring more than $10,000 in cash upon entering or leaving the country. 

The report — titled “Jetway Robbery? Homeland Security and Cash Seizures at Airports” — says that customs officers seized $2 billion in more than 30,000 seizures at U.S. airports over a 17-year period. A big chunk of that total, $500 million, was confiscated only because American and foreign travelers failed to declare more than $10,000 in cash — not because the seizure was connected to serious criminal activity.

In response to the report’s findings, U.S. Customs and Border Protection said travelers must obey the cash reporting law and the agency must enforce it. The only two expectations that CBP has of travelers is that they truthfully report all currency that they possess to a CBP officer, and that they complete a U.S. Treasury Department form (FINCEN 105) for all currency and other monetary instruments that exceed $10,000, the agency said. 

“The disregard that some travelers have for our nation’s currency reporting laws is a concern and very unwise, especially when you consider travelers can keep their currency simply by just being honest and declaring the full amount to a Customs and Border Protection officer,” said Zach Mann, an agency spokesman in South Florida. 

“CBP’s mission is to protect our nation, its citizens, residents and economy from criminal and terrorist activity,” Mann said. “As an agency, and as individual officers, we want to spend our time effectively and efficiently going after those with bad intentions. Part of the equation for all of our success is informed compliance by the traveler. When travelers know the law and comply then CBP can better focus on the bad guys.”  

Cadenas’ encounter with customs officers at Fort Lauderdale’s airport is a case in point. When pressed about why he was traveling with more than $29,000 in cash, Cadenas said he was planning to board a connecting flight from Panama to Cuba and then buy a car on the island, according to court records. But he also confessed that some of the money was part of a business arrangement where he and his wife transfer money from the U.S. to Cuba, records show. He said he only declared $3,000 to customs officers in Fort Lauderdale because he was worried about Cuban officials taking his cash.  Instead, the U.S. government seized because agents said he didn’t declare the full total.  

One month before the feds seized Cadenas’ cash, Quashad Peterson Taylor lost a massive amount of money to customs officials at Fort Lauderdale Executive Airport as his chartered flight was about to leave for the Bahamas.  Customs and Border Patrol and Homeland Security Investigations inspected the plane from Tropical Air Charters Inc. Taylor was a passenger with two crew members who all shook their heads when investigators asked if they had more than $10,000 in their possession, according to a criminal complaint and affidavit. Taylor said he only had $100 in a gray backpack in the cargo area.  Records indicated that Taylor was also suspected of traveling with bulk cash in 2018.  This time, officers searched the plane and found three large plastic bins filled with wrapped bundles of cash, rubber bands and empty money storage bags, according to the affidavit. More money was also found in Taylor’s fanny pack. 

After the search of the plane in April, Taylor filled out a currency reporting form and wrote how he was transporting more than $1,000,000 on the flight to the Bahamas. He claimed all the money belonged to him, according to the criminal affidavit. Customs officers seized the money, which will be forfeited at his upcoming sentencing and turned over to the U.S. government.  Taylor pleaded guilty to bulk cash smuggling last month and will face sentencing in mid-October, said his lawyer, Nayib Hassan. He declined to comment about the case. 

Relevant Analyses 

If Western Union Ends Remittance Services To Cuba, That Means A Return Of “Mules On Steroids”- The Impact Could Cripple MIA November 16, 2020

Western Union Data For Transfers To Cuba: 2.88 Million Annually- 24% To Havana; Florida 1st, Texas 2nd, New Jersey 3rd; US$200,000+ Could Be Aboard Each Flight From Miami November 19, 2020

Will United States Airlines Now Post A Link To FinCEN Form 105 On Their Internet Sites For Passengers Traveling To Cuba? November 23, 2020

Binary: Electronic Remittance Transfer Decision For Biden Administration And Diaz-Canel Administration; And Putting US$20 Million Into Perspective Aug 12, 2021

Healthcare Crisis In Cuba Provides Additional Questions And Opportunities For Biden-Harris Administration To Address Electronic Remittance Transfers... And Do So Practically Aug 19, 2021

Biden-Harris Administration Confirms Cuba "Remittance Working Group" Has No Private Sector Members Aug 12, 2021

Cuba Purchases Of U.S. Agricultural Commodity/Food Products Increase 94.4% Year-To-Year; June 2021 Increased 413% Compared To June 2020 Aug 8, 2021

Defining "Transformative"- Cuba Ratifies Decree-Law Authorizing SME's: Micro (1-10 employees), Small (11-35 employees), Medium (35-100 employees). The Private Sector Has Returned. Aug 7, 2021

Cuba Links Resumption Of Remittances From United States To Expanding Investment Opportunities For Cuban Residents Abroad Aug 6, 2021

Cuba Expands Again Role Of Private Sector- Suppliers, Foreign Currency Access Aug 5, 2021

European Union Member France's CMA CGM S.A. Is 41st Company Sued Using Libertad Act- Shipping To Cuba Through Jamaica And Using Port Mariel Aug 3, 2021

American Airlines Survives: Judge Quotes John Adams. Libertad Act Lawsuit Dismissed- Plaintiff Has Standing, But Inheritance Came Too Late. Aug 3, 2021

Judge In Libertad Act Lawsuit Against Seaboard Marine Dismisses 17 Plaintiffs; Remaining Plaintiff Wins Rulings- They Own The Property. Seaboard Trafficked And Knew It Was Trafficking. Settlement? Jul 31, 2021

President Biden Meets With Individuals Of Cuban Descent To Discuss Policy And Regulatory Options; Background Call Provides Details; White House Press Briefing Mentions Cuba Jul 30, 2021

U.S. Secretary Of State Speaks With Foreign Ministers Of Mexico And Spain. Cuba Does Not Come Up For Mexico Given Acts By Mexico's President? And Spain Does Not Confirm Cuba Was Discussed. Jul 30, 2021

Cuba Suspends Tariffs And Fees For Non-Commercial (SME's Next?) Solar Systems. Another Opportunity For Biden-Harris Administration To Support U.S. Exporters And Florida Companies Should Benefit. Jul 30, 2021

Healthcare Crisis In Cuba Provides Additional Questions And Opportunities For Biden-Harris Administration To Address Electronic Remittance Transfers... And Do So Practically

The partial collapse of the Republic of Cuba government-operated healthcare system managed by the Diaz-Canel-Valdes Mesa Administration (2019- ) has provided additional questions and additional opportunities for the Biden-Harris Administration (2021- ).  Can citizen anger be managed? 

  • First, how to craft an electronic remittance transfer regulatory and policy construct which is perceived in the United States (specifically from some members of the 117th United States Congress and to populations residing in certain areas of the State of Florida) as “helping to rescue” the 11.3 million citizens of the Republic of Cuba while not perceived as “helping to rescue” the government of the Republic of Cuba. 

  • Second, how to craft an electronic remittance transfer regulatory and policy construct whereby Republic of Cuba nationals direct responsibility toward the government of the Republic of Cuba for commercial, economic, and political inadequacies rather than toward the government of the United States. 

  • Third, opportunities exist that were absent two months ago for the Biden-Harris Administration to further lessen the dependency of Republic of Cuba nationals upon the government of the Republic of Cuba.  One of these opportunities is through the implementation of a regulatory and policy construct to authorize direct investment to and direct financing for the re-emerging private sectors in the Republic of Cuba, which are fragile and subject to internal and external disruption.  They require nurturing.  They require resources.  They require capital.  They require financing.  And those providing the capital and the financing require a direct means to obtain dividends from their investment and payment for the loans provided. 

The most efficient and cost-effective means for the Biden-Harris Administration to further separate the citizens of the Republic of Cuba from the commercial and economic constraints of the government of the Republic of Cuba is to provide financial sector authorizations that encourage the development of and create an efficient resource delivery marketplace.   

If the Biden-Harris Administration wants to meaningfully provide for United States-based companies and individuals subject to United States jurisdiction to invest in and provide financing for micro, small and medium-size enterprises (SME’s) located in the Republic of Cuba, then essential to remove constraints upon the movement of funds.    

This requires sending and receiving funds directly rather than through third countries.  This requires financial institutions in third countries be authorized to process transactions relating to the Republic of Cuba.  

If the Biden-Harris Administration wants to create stress points throughout the banking system in the Republic of Cuba, then [from its current impractical status] authorize Direct Correspondent Banking and U-turn transactions. 

Critical to Biden-Harris Administration thinking: Not to sacrifice the re-emerging private sectors in the Republic of Cuba to make a political point.  Meaning, escape the trap of authorizing the processing, delivery, and distribution of electronic remittance transfers, authorizing implementation of direct correspondent banking, re-authorizing U-turn financial transactions… but doing each with onerous restrictions that results in United States companies and financial institutions unable to make practical use of the regulatory and policy decisions.  All participants require clarity rather than uncertainty.  When faced with uncertainty, United States companies and financial institutions will not engage

  • The best example of such regulatory malpractice was during the Obama-Biden Administration (2009-2017).  In 2015, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury authorized Pompano Beach, Florida-based Stonegate Bank (2017 assets approximately US$2.9 billion) to have a correspondent account with Republic of Cuba government-operated Banco Internacional de Comercia SA (BICSA), a member of Republic of Cuba government-operated Grupo Nuevo Banca SA, created by Corporate Charter No. 49 on 29 October 1993 and commenced operation on 3 January 1994.  Stonegate Bank provided commercial operating accounts for the Embassy of the Republic of Cuba in Washington DC, the Permanent Mission of the Republic of Cuba to the United Nations in New York City, and other types of OFAC-authorized transactions for more than eighty customers.  In September 2017, Stonegate Bank was purchased by Conway, Arkansas-based Home BancShares (2019 assets approximately US$14 billion) through its Centennial Bank subsidiary.  Despite intense advocacy, the Obama-Biden Administration National Security Council (NSC) inexplicably refused to permit BICSA a correspondent account with Stonegate Bank, so Stonegate Bank processed transactions for approximately eighty (80) customers on a regular basis through Panama City, Panama-based Multibank, which had dealings with the Republic of Cuba.   However, on 16 June 2020, Bogota, Colombia-based Grupo Aval reported: “On May 25th, Banco de Bogotá, through its subsidiary Leasing Bogotá S.A. Panamá, acquired 96.6% of the ordinary shares of Multi Financial Group.  As part of the acquisition process, MFG’s operation in Cuba was closed and as part of the transaction.  Grupo Aval complies with OFAC regulations and doesn't have transactional relationships with Cuba.”   

The OFAC should focus upon making the most basic possible.  This means electronic transfer remittances where the recipient receives their choice of currency- in Cuban Pesos (CUP) or United States Dollars and bank account to bank account.  Don’t complicate the process

Also vital for the Biden-Harris Administration to authorize United States companies and individuals subject to United States jurisdiction with access to all delivery platforms that currently exist in the Republic of Cuba- whether sending funds to the Republic of Cuba government-operated American International Services (AIS) Moneda Libremente Convertible (MLC) cards, through Empresa de Telecomunicaciones de Cuba S.A. (ETECSA) to wireless devices, or the use of digital currencies.  Caution with respect to supporting the use of digital currencies as the product remains unregulated, volatile in value, speculative, and susceptible to theft.  Not beneficial for the Biden-Harris Administration to introduce further economic and commercial instability to the Republic of Cuba- for which it will certainly be blamed when holders loose value.    

The OFAC could require payout (in currency and bank account to bank account) in the Republic of Cuba to be made in U.S. Dollars or CUP, at the discretion of the recipient.  The result would place pressure upon the Central Bank of the Republic of Cuba to further align the official value of the CUP at 24 to US$1.00 nearer to the unofficial rate of the CUP at 70 to the US$1.00.  Authorizing direct correspondent banking would permit electronic remittance transfers to settle respective accounts within hours rather than days- meaning a process less expensive, more efficient, and more transparent.    

The OFAC could place a “consistent with the global marketplace limit” upon electronic remittance transfer fees arriving to the Republic of Cuba that are processed by and create benefit to the government of the Republic of Cuba primarily through Revolutionary Armed Forces (FAR) of the Republic of Cuba-connected Banco Financiero Internacional S.A. (BFI), Republic of Cuba government-operated Financiera Cimex (Fincimex) and Republic of Cuba government-operated American International Services (AIS).   

The OFAC could also carve-out from the Cuba Restricted List (CRL) maintained by the United States Department of State an authorization for BFI, Fincimex, and AIS to engage solely in electronic remittance transfers, but remain subject to all other provisions of the CRL.      

Seizing Funds Remains Issue For Financial Institutions 

The use of direct correspondent banking could result in an attorney on behalf of a client asking a court to seize funds controlled by a United States-based company or financial institution with the argument that the Republic of Cuba “has an interest” in the funds.  However, there are two relevant points: 

First, important to authorize direct correspondent banking and then allow the marketplace to determine the risk associated with transactions and when direct correspondent banking is implemented.  

Second, an attorney would find that case law, OFAC license wording authorizing the process, the public benefits of direct correspondent banking, and public discourse about the consequences to United States exporters of expropriating funds owed to them as persuasive in deterring a request.   

  • Since December 2001, approximately US$6,455,169,592.00 (through June 2021) of agricultural commodities and food products have been exported from the United States to the Republic of Cuba through provisions of the Trade Sanctions Reform and Export Enhancement Act (TREEA) of 2000.  Since 2003, approximately US$26,807,700.00 of healthcare products (medical equipment, medical instruments, medical supplies, pharmaceuticals) have been exported from the United States to the Republic of Cuba through provisions of the Cuban Democracy Act (CDA) of 1992.  All of these funds have been received by United States exporters through third countries rather than directly from the Republic of Cuba.  As a result, transactions take more time to complete, are more costly to the United States exporter, and are less transparent. 

  • The government of the Republic of Cuba was estimated to receive on an annual basis approximately US$20 million as fees for the processing and delivery of electronic remittance transfers from the United States to the Republic of Cuba.  The approximately US$20 million represented approximately 2% of the total value of electronic remittance transfers of approximately US$1.5 billion.  The approximately 2% was in line with global norms.  Daily, the fee to the Republic of Cuba was approximately US$54,000.00.  If the OFAC were to authorize direct correspondent banking, then Denver, Colorado-based Western Union Company (2019 revenues approximately US$5.3 billion) and other companies could settle accounts daily, thus limiting the amount of funds which could be subject to court action.   

  • The Central Bank of the Republic of Cuba may determine that making operational direct correspondent banking between, for example, BICSA and Home BancShares, BICSA and Western Union Company, or BFI and Western Union Company would not be in their interest due to United States statutes and regulations relating to compliance and transparency which, in their opinion, may result in financial information used to their determent.  Important to permit the Central Bank of the Republic of Cuba to make that decision rather than the Biden-Harris Administration make that decision.  Removal of obstacles places additional pressures upon the government of the Republic of Cuba to choose between engagement under conditions similar to how financial institutions in other countries make use of direct correspondent banking or continue with the third-country transfer process. 

Historical Consideration 

Conditionality, important to note, was neither effective nor sustainable during the Fidel Castro Administration (1976-2008), the Raul Castro Administration (2008-2018), or thus far with the Diaz-Canel-Valdes Mesa Administration.   

Paraphrasing a comment shared in the early 1990’s from a diplomat residing in the Republic of Cuba: Successive governments of the Republic of Cuba have been prepared for its citizens to suffer. For the Biden-Harris Administration, the question is if it is prepared to permit the citizens of the Republic of Cuba to suffer.

LINK To Complete Analysis In PDF Format

Relevant Analyses 

If Western Union Ends Remittance Services To Cuba, That Means A Return Of “Mules On Steroids”- The Impact Could Cripple MIA November 16, 2020

Western Union Data For Transfers To Cuba: 2.88 Million Annually- 24% To Havana; Florida 1st, Texas 2nd, New Jersey 3rd; US$200,000+ Could Be Aboard Each Flight From Miami November 19, 2020

Will United States Airlines Now Post A Link To FinCEN Form 105 On Their Internet Sites For Passengers Traveling To Cuba? November 23, 2020

Binary: Electronic Remittance Transfer Decision For Biden Administration And Diaz-Canel Administration; And Putting US$20 Million Into Perspective Aug 12, 2021

Healthcare Crisis In Cuba Provides Additional Questions And Opportunities For Biden-Harris Administration To Address Electronic Remittance Transfers... And Do So Practically Aug 19, 2021

Biden-Harris Administration Confirms Cuba "Remittance Working Group" Has No Private Sector Members Aug 12, 2021

Cuba Purchases Of U.S. Agricultural Commodity/Food Products Increase 94.4% Year-To-Year; June 2021 Increased 413% Compared To June 2020 Aug 8, 2021

Defining "Transformative"- Cuba Ratifies Decree-Law Authorizing SME's: Micro (1-10 employees), Small (11-35 employees), Medium (35-100 employees). The Private Sector Has Returned. Aug 7, 2021

Cuba Links Resumption Of Remittances From United States To Expanding Investment Opportunities For Cuban Residents Abroad Aug 6, 2021

Cuba Expands Again Role Of Private Sector- Suppliers, Foreign Currency Access Aug 5, 2021

European Union Member France's CMA CGM S.A. Is 41st Company Sued Using Libertad Act- Shipping To Cuba Through Jamaica And Using Port Mariel Aug 3, 2021

American Airlines Survives: Judge Quotes John Adams. Libertad Act Lawsuit Dismissed- Plaintiff Has Standing, But Inheritance Came Too Late. Aug 3, 2021

Judge In Libertad Act Lawsuit Against Seaboard Marine Dismisses 17 Plaintiffs; Remaining Plaintiff Wins Rulings- They Own The Property. Seaboard Trafficked And Knew It Was Trafficking. Settlement? Jul 31, 2021

President Biden Meets With Individuals Of Cuban Descent To Discuss Policy And Regulatory Options; Background Call Provides Details; White House Press Briefing Mentions Cuba Jul 30, 2021

U.S. Secretary Of State Speaks With Foreign Ministers Of Mexico And Spain. Cuba Does Not Come Up For Mexico Given Acts By Mexico's President? And Spain Does Not Confirm Cuba Was Discussed. Jul 30, 2021

Cuba Suspends Tariffs And Fees For Non-Commercial (SME's Next?) Solar Systems. Another Opportunity For Biden-Harris Administration To Support U.S. Exporters And Florida Companies Should Benefit. Jul 30, 2021

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USDOT Authorizes Cargo Flights From United States To Six Airports In Cuba Through 30 November 2021

On 14 July 2021, the United States Department of Transportation (USDOT) granted an Emergency Exemption to Skyway Enterprises, Inc. and IBC Airways, Inc. to operate cargo flights from the United States to the Republic of Cuba through 30 November 2021. Swift Air LLC is awaiting authorization.  

Excerpts: 

“Skyway requests an emergency exemption from Order 2020-8-4, in order to operate up to two weekly all-cargo charter operations to transport humanitarian aid and diplomatic cargo between Miami, Florida, and Havana, Cuba, using small aircraft, from September 29, 2021, to November 30, 2021. Skyway also requests emergency exemption authority to operate up to one weekly all-cargo charter operation to transport humanitarian aid, using small aircraft, from Miami to any of the following additional points in Cuba: Santiago de Cuba, Matanzas/Varadero, Holguin, Santa Clara, and Camagüey, between July 22, 2021, and November 30, 2021.  

In support of its request, Skyway states that the proposed operation is a continuation of its previously approved operation to carry humanitarian aid, and that U.S. officials in Cuba are requesting that Skyway transport diplomatic cargo to the U.S. Embassy in Cuba. Skyway asserts that its proposed operation would satisfy two exceptions noted in Order 2020-8-4, that permit certain charter operations for “emergency medical purposes…, and other travel deemed to be in the interest of the United States.” 

Skyway Enterprises is operating two flights per week. IBC is expected to commence soon.

Background: By Order 2020-8-4, issued August 13, 2020, the Department suspended the authority of all U.S. air carriers and foreign air carriers to provide charter flights between the United States and all airports in Cuba, except for authorized public charters to and from Havana and other authorized charter flights for emergency medical purposes, search and rescue, and other travel deemed to be in the interest of the United States.  The Department issued Order 2020-8-4 at the request of the U.S. Department of State, following the receipt of a letter from then-Secretary of State Michael R. Pompeo to then-Secretary of Transportation Elaine L. Chao, stating that:  

To advance the Administration’s policy to strengthen the economic pressure on the Cuban regime as a means to restrict the regime’s ability to repress its people and support the illegitimate Maduro regime in Venezuela, and in the foreign-policy interests of the United States, I respectfully request that the Department of Transportation suspend until further notice all charter flights between the United States and all airports in Cuba over which the Department of Transportation exercises jurisdiction, except for authorized public charters to and from Havana, and other authorized charter flights for emergency medical purposes, search and rescue, and other travel deemed to be in the interest of the United States.  

Accordingly, the Department found that it was in the public interest to suspend the charter authority of all U.S. and foreign carriers to the extent necessary to prohibit charter operations between the United States and Cuba as set forth in the Order.  

Decision: We have decided to grant Skyway’s application for an exemption from Order 2020-8-4 to operate the proposed charter flights. Our action in Order 2020-8-4 suspending carriers’ U.S.-Cuba charter authority was taken at the request of the U.S. Department of State, and it incorporated the Department of State’s language as to permitted exceptions.  

We take note of the assertion made by Skyway that the flights should be permitted under the Order’s exceptions. Those exceptions, as discussed above, were expressly derived from the Department of State letter upon which the DOT suspension action was predicated. Accordingly, we consulted with the Department of State to determine whether they regard the proposed Skyway flights as coming within the Order’s specified exceptions.  

The Department of State provided its view that the application does fall within the Order’s specified exceptions. The Department of State also noted its willingness to review future exemption requests to determine whether proposed flights fall within the scope of its specified exceptions as set forth in DOT’s Order 2020-8-4, namely: emergency medical purposes, search and rescue, and other travel deemed to be in the interest of the United States. Against this background, we find that it would be in the public interest to grant the requested exemption from Order 2020-8-4 to operate the proposed all-cargo charter flights.  

As a final matter, we remind the applicant that a number of significant limitations and requirements remain in place concerning air transportation between Cuba and the United States. Nothing in the Department’s award of authority will relieve any party from complying with all applicable regulations and requirements of other U.S. agencies and with all applicable laws of the United States.  

To the extent not granted, we denied all requests in the referenced application. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.” 

LINKS: 

Application of Swift Air, L.L.C. d/b/a iAero Airways for an Emergency Exemption from Orders 2020-5-7 and 2020-8-4 (10 August 2021) 

Application Of Swift Air, L.L.C. D/B/A iAero Airways For An Emergency Exemption And Motion To Shorten Answer Period (6 August 2021) 

USDOT Notice Of Action Taken- Skyway Enterprises, Inc. (23 July 2021) 

USDOT Notice Of Action Taken- Skyway Enterprises, Inc. (14 July 2021) 

Application Of IBC Airways, Inc. For An Emergency Exemption (8 July 2021)

Application Of Swift Air, L.L.C. D/B/A iAero Airways For An Emergency Exemption And Motion To Shorten Answer Period (6 July 2021) 

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Binary: Electronic Remittance Transfer Decision For Biden Administration And Diaz-Canel Administration; And Putting US$20 Million Into Perspective

A binary decision: The Biden-Harris Administration (2021- ) and Diaz-Canel-Valdes Mesa Administration (2019- ) each have two choices with respect to the delivery of electronic remittance transfers from the United States to the Republic of Cuba: 

  • For the Biden-Harris Administration the choice is to accept or reject a role for the government of the Republic of Cuba, and “government” includes entities controlled by the Revolutionary Armed Forces (FAR) of the Republic of Cuba. 

  • For the Diaz-Canel-Valdes Mesa Administration the choice is to continue or discontinue a role for the government of the Republic of Cuba, and “government” includes entities controlled by the Revolutionary Armed Forces (FAR) of the Republic of Cuba. 

That’s it. 

There are no means to remove the government of the Republic of Cuba from the processing, distribution, delivery, and use of funds delivered to the Republic of Cuba whether by electronic remittance transfers or any other means.  The government of the Republic of Cuba will benefit.  The United States government can do nothing about it.  Here’s why: 

  • The government of the Republic of Cuba requires as do most countries that transactions within its territory be conducted in the national currency, the Cuban Peso (CUP). 

  • The government of the Republic of Cuba, through its Central Bank, as in many countries, determines the exchange rate for the currency.  The CUP is currently valued at 24 to US$1.00.  The CUP in the informal market is valued at 70 to US$1.00.  There is anticipation that the CUP may be devalued by the end of 2021.  Two illustrative examples: The Hashemite Kingdom of Jordan has for years maintained erroneously that its currency, the Dinar, is worth more than the United States Dollar.  The People’s Republic of China has for years maintained an exchange rate for its currency, the Renminbi, that the United States Government believes is undervalued.  The Republic of Cuba is not the only country maintain a currency valuation that is not consistent with global economic norms. 

  • The government of the Republic of Cuba owns and manages the majority of retail stores and service providers and establishes the prices for products and services.  Not uncommon for retail prices for products to be 200% or more above cost. 

Since November 2020, when the Trump-Pence Administration (2017-2021) determined that no longer was it the interest of the United States for electronic remittance transfers to be processed and distributed by entities that it maintained were controlled by the FAR, the Diaz-Canel-Valdes Mesa Administration has not agreed to shift from entities controlled by the FAR the processing and distribution of electronic remittance transfers.  As of August 2021, there remains no indication that the decision taken in November 2020 will be reversed. 

It’s 2%- US$20 million 

The government of the Republic of Cuba is estimated to receive on an annual basis approximately US$20 million as fees for the processing and delivery of electronic remittance transfers from the United States to the Republic of Cuba.   

The approximately US$20 million represents approximately 2% of the total value of electronic remittance transfers of approximately US$1.5 billion.  The 2% is in line with global norms.  

For financial perspective as to what approximately US$20 million means in terms of the commercial relationship between the Republic of Cuba and the United States: 

  • United States exports of agricultural commodities and food products to the Republic of Cuba in January 2021 were US$19,018,549.00 and in February 2021 were US$21,242,700.00. 

  • United States exports of agricultural commodities and food products to the Republic of Cuba thus far in 2021 (January-June) were US$159,942,168.00; for 2020 were US$163,354,728.00; and for 2019 were US$257,659,479.00. 

  • From 2003 through June 2021, United States exports of medical equipment, medical instruments, medical supplies, and pharmaceuticals is US$26,807,700.00 

The approximately US$20 million in fees is divided amongst three Republic of Cuba government-operated entities.  All electronic remittance transfers arriving to the Republic of Cuba are processed by and create benefit to the government of the Republic of Cuba primarily through FAR-connected Republic of Cuba government-operated Banco Financiero Internacional S.A. (BFI), Republic of Cuba government-operated Financiera Cimex (Fincimex) and Republic of Cuba government-operated American International Services (AIS).    

One option under consideration is for the Diaz-Canel-Valdes Mesa Administration to permit electronic remittance transfer fees to remain in a segregated account in the United States where the fees would be used to make payment for authorized exports from the United States.  The Republic of Cuba would use funds for purchases that it deems necessary with payment solely moving within the United States, resulting in transfers that are more efficient and transparent. 

There are obstacles to such a plan.  If Denver, Colorado-based Western Union Company (2019 revenues approximately US$5.3 billion) were to retain the fees for the benefit of the government of the Republic of Cuba, attorneys representing clients with outstanding court judgements would likely attempt to seize the fees to satisfy past or future court-issued judgements against the Republic of Cuba.  Even if the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury were to issue a specific license to Western Union Company to retain the fees or create a fee account and provide regulatory considerations to protect the account, attorneys would likely seek a judicial review because Western Union Company could be deemed to “have an interest” in funds belonging to the Republic of Cuba, thus incurring legal costs to Western Union Company. 

Another option under consideration is to suspend all fees for electronic remittance transfers from the United States to the Republic of Cuba through 31 December 2021.  The suspension would align with the duration for decisions by government of the Republic of Cuba to suspend certain duties and fees on imported products.  A shorter in duration suspension of all fees would front-load electronic remittance transfers from the United States to the Republic of Cuba as senders seek to avoid fees.  The result would be a politically challenging for the Biden-Harris Administration financial windfall for the government of the Republic of Cuba. 

There are decisions the OFAC could take that would enhance or complicate the electronic remittance transfer process.  The goal should be for regulations to align with global commercial norms and thus lessen the possibility the Republic of Cuba will reject any decision delivered from the Biden-Harris Administration:   

  • The OFAC could require that companies subject to United States jurisdiction engaged in electronic remittance transfers to the Republic of Cuba make the payout in United States Dollars to the recipient in the Republic of Cuba- fostering a dollarization of the commercial and economic systems in the Republic of Cuba.  This would then require the recipient to exchange the United States Dollars for CUP at the exchange rate established by the Central Bank of the Republic of Cuba. 

  • The OFAC could require companies subject to United States jurisdiction engaged in electronic remittance transfers to limit the fee(s) paid to Republic of Cuba government-operated entities.  Currently, the fee paid by Western Union Company to Fincimex, AIS, and BFI total approximately 2%, which is in line with global commercial norms.    

  • The OFAC could require companies subject to United States jurisdiction engaged in electronic remittance transfers to the Republic of Cuba to provide quarterly reports to the OFAC and United States Department of State.  The reports would need be exempt from requests using the Freedom of Information Act (FOIA) and include the total amount transferred from the United States to the Republic of Cuba and the amount of fees paid to Republic of Cuba government-operated entities.  

  • The OFAC could require companies subject to United States jurisdiction engaged in electronic remittance transfers to the Republic of Cuba to use Direct Correspondent Banking for the transfer of funds from the United States to the Republic of Cuba rather than through third countries which is less transparent, less efficient, less secure.  

In 2015, the OFAC authorized Pompano Beach, Florida-based Stonegate Bank (2017 assets approximately US$2.9 billion) to have a correspondent account with Republic of Cuba government-operated Banco Internacional de Comercia SA (BICSA), a member of Republic of Cuba government-operated Grupo Nuevo Banca SA, created by Corporate Charter No. 49 on 29 October 1993 and commenced operation on 3 January 1994.  Stonegate Bank provided commercial operating accounts for the Embassy of the Republic of Cuba in Washington DC, the Permanent Mission of the Republic of Cuba to the United Nations in New York City, and other types of OFAC-authorized transactions for more than eighty customers.  In September 2017, Stonegate Bank was purchased by Conway, Arkansas-based Home BancShares (2019 assets approximately US$14 billion) through its Centennial Bank subsidiary.  Despite intense advocacy, the Obama-Biden Administration National Security Council (NSC) inexplicably refused to permit BICSA a correspondent account with Stonegate Bank, so Stonegate Bank processed transactions for approximately eighty (80) customers on a regular basis through Panama City, Panama-based Multibank, which had dealings with the Republic of Cuba.   However, on 16 June 2020, Bogota, Colombia-based Grupo Aval reported: “On May 25th, Banco de Bogotá, through its subsidiary Leasing Bogotá S.A. Panamá, acquired 96.6% of the ordinary shares of Multi Financial Group.  As part of the acquisition process, MFG’s operation in Cuba was closed and as part of the transaction.  Grupo Aval complies with OFAC regulations and doesn't have transactional relationships with Cuba.”  

LINK To Complete Analysis In PDF Format

Recent Cuba Analyses  

U.S. Department Of State Memorandum: The 17 Company Members Of The CRWG- Moving Remittances And Using Remittances; Cuba Entities Need Be Part Of The Process July 26, 2021    

Biden-Diaz-Canel Remittance Compromise: U.S. And Cuba Companies Suspend Transaction Fees Until 31 December 2021. Impact On 800 Publix Markets July 27, 2021   

Biden-Harris Administration Confirms Cuba "Remittance Working Group" Has No Private Sector Members August 12, 2021 

Defining "Transformative"- Cuba Ratifies Decree-Law Authorizing SME's: Micro (1-10 employees), Small (11-35 employees), Medium (35-100 employees). The Private Sector Has Returned. Aug 7, 2021    

Cuba Links Resumption Of Remittances From United States To Expanding Investment Opportunities For Cuban Residents Abroad Aug 6, 2021    

Cuba Expands Again Role Of Private Sector- Suppliers, Foreign Currency Access Aug 5, 2021    

Cuba Suspends Tariffs And Fees For Non-Commercial (SME's Next?) Solar Systems. Another Opportunity For Biden-Harris Administration To Support U.S. Exporters And Florida Companies Should Benefit. Jul 30, 2021    

If A Product Costs At Least 2,500 Pesos (US$104.16), Customers In Cuba Now May Obtain Financing: Terms Are 2.5% Interest With 20% Down July 24, 2021  

Biden Administration Wants To Deny Cuba's Government (Military) With Earnings- Conditional Resumption Of Product Filled Flights To Airports In Cuba Benefits Self-Employed; By-In From Congress? July 19, 2021 

Is Biden-Harris Administration Nearing Decision To Reverse Trump-Pence Administration Prohibition On Cuba Military Earning Money From Remittances? July 15, 2021    

The Word For Today Is "cuentapropistas" And It Is The Fulcrum Around Which Biden Administration Cuba Policy Revolves May 20, 2021 

Remittances: Will Biden-Harris Administration Repeat Mistakes Of Obama-Biden Administration And Learn From Mistakes Of Trump-Pence Administration? No Triangles. Yes Loans. Yes Investments. May 18, 2021 

Cuba Central Bank May Provide Option For Western Union To Continue Services To Cuba: REDSA November 26, 2020    

Western Union Data For Transfers To Cuba: 2.88 Million Annually- 24% To Havana; Florida 1st, Texas 2nd, New Jersey 3rd; US$200,000+ Could Be Aboard Each Flight From Miami November 19, 2020  

If Western Union Ends Remittance Services To Cuba, That Means A Return Of “Mules On Steroids”- The Impact Could Cripple MIA November 16, 2020   

At 6:00 PM Today, Final [For Now] Western Union Transactions With Cuba Are [Temporarily Perhaps] Suspended November 23, 2020   

Will United States Airlines Now Post A Link To FinCEN Form 105 On Their Internet Sites For Passengers Traveling To Cuba? November 23, 2020   

Trump Administration Executive Order About China Military Will Impact Biden Administration Decisions About Cuba Military November 17, 2020

Cuba Has Options To Retain Western Union Electronic Remittance Services- Transfer To A Bank? November 16, 2020    

Western Union Preparing To End Money Transfers To Cuba On 22 November 2020.... Will Cuba Permit It?November 13, 2020

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Biden-Harris Administration Confirms Cuba "Remittance Working Group" Has No Private Sector Members

From a United States Department Of State spokesperson:

"The Administration has formed a U.S. governmental Remittance Working Group to review available options to establish remittance channels so that the Cuban people receive the maximum benefit from remittances their families send. At the President’s direction the State Department and the Treasury Department will provide recommendations to the President for how to maximize remittances to the Cuban people, while minimizing or eliminating the Cuban military’s ability to take a cut."

Biden-Harris Administration (2021- ) officials familiar with the process confirm that the members of the Remittance Working Group are United States Government employees.

Reasonable to conclude members of the Remittance Working Group include United States Government employees from The White House (including National Security Council), United States Department of State, United States Department of the Treasury, United States Department of Defense, United States Department of the Treasury, United States Department of Commerce, United States Department of Justice, and Central Intelligence Agency.

Recent Cuba Analyses

U.S. Department Of State Memorandum: The 17 Company Members Of The CRWG- Moving Remittances And Using Remittances; Cuba Entities Need Be Part Of The Process July 26, 2021  

Biden-Diaz-Canel Remittance Compromise: U.S. And Cuba Companies Suspend Transaction Fees Until 31 December 2021. Impact On 800 Publix Markets July 27, 2021 

Defining "Transformative"- Cuba Ratifies Decree-Law Authorizing SME's: Micro (1-10 employees), Small (11-35 employees), Medium (35-100 employees). The Private Sector Has Returned. Aug 7, 2021  

Cuba Links Resumption Of Remittances From United States To Expanding Investment Opportunities For Cuban Residents Abroad Aug 6, 2021  

Cuba Expands Again Role Of Private Sector- Suppliers, Foreign Currency Access Aug 5, 2021  

Cuba Suspends Tariffs And Fees For Non-Commercial (SME's Next?) Solar Systems. Another Opportunity For Biden-Harris Administration To Support U.S. Exporters And Florida Companies Should Benefit. Jul 30, 2021  

If A Product Costs At Least 2,500 Pesos (US$104.16), Customers In Cuba Now May Obtain Financing: Terms Are 2.5% Interest With 20% Down July 24, 2021

Biden Administration Wants To Deny Cuba's Government (Military) With Earnings- Conditional Resumption Of Product Filled Flights To Airports In Cuba Benefits Self-Employed; By-In From Congress? July 19, 2021

Is Biden-Harris Administration Nearing Decision To Reverse Trump-Pence Administration Prohibition On Cuba Military Earning Money From Remittances? July 15, 2021  

Cuba Central Bank May Provide Option For Western Union To Continue Services To Cuba: REDSA November 26, 2020  

Western Union Data For Transfers To Cuba: 2.88 Million Annually- 24% To Havana; Florida 1st, Texas 2nd, New Jersey 3rd; US$200,000+ Could Be Aboard Each Flight From Miami November 19, 2020  

If Western Union Ends Remittance Services To Cuba, That Means A Return Of “Mules On Steroids”- The Impact Could Cripple MIA November 16, 2020  

At 6:00 PM Today, Final [For Now] Western Union Transactions With Cuba Are [Temporarily Perhaps] Suspended November 23, 2020  

Will United States Airlines Now Post A Link To FinCEN Form 105 On Their Internet Sites For Passengers Traveling To Cuba? November 23, 2020 

Trump Administration Executive Order About China Military Will Impact Biden Administration Decisions About Cuba Military November 17, 2020  

Cuba Has Options To Retain Western Union Electronic Remittance Services- Transfer To A Bank? November 16, 2020  

Western Union Preparing To End Money Transfers To Cuba On 22 November 2020.... Will Cuba Permit It? November 13, 2020 

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United States Department Of State Spokesperson References Cuba

The United States Department of State
Washington DC
11 August 2021


Briefing- Ned Price

Today marks one month since the Cuban people took to the streets, making a call for freedom heard around the world. The Cuban Government responded with a brutal wave of repression unseen in decades. As of today, over 800 Cubans have been reported detained for peacefully demonstrating on July 11th. By some accounts, there may be hundreds more. Many are held incommunicado, without access to family or legal representation; secret, summary judicial proceedings lack fair trial guarantees and seek to repress, to silence, and make examples of anyone who added their voice to peaceful protests on July 11th.

The Government of Cuba denies this systematic abuse of human rights and refuses access to international observers. Cuba’s leaders are counting on the world to turn a blind eye to their repression. The world must not look away. The United States will not look away. We join the families who are suffering and scared, Cuba’s human rights defenders, and those who share our concern around the world in calling for the immediate release of all those detained or missing for merely exercising their rights to freedom of expression and peaceful assembly.

Addressing the ongoing crisis in Cuba is a top priority. At President Biden’s direction, the U.S. Government is actively focused on providing support to the Cuban people, whether it is facilitating humanitarian assistance or information access. We’ve brought to bear the strength of international diplomacy, rallying nations around the world to speak out in support of the Cuban people and in condemnation of the regime’s violent response to the protests. And we are holding the repressors accountable for human rights abuses through the Global Magnitsky sanctions program.

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OFAC Publishes "Fact Sheet" About The Internet And Cuba

Publication of Fact Sheet on Supporting the Cuban People’s Right to Seek, Receive, and Impart Information through Safe and Secure Access to the Internet

On August 11, 2021, the United States Department of the Treasury's Office of Foreign Assets Control (OFAC) and Department of Commerce's Bureau of Industry and Security (BIS) issued a Fact Sheet to emphasize the U.S. government’s commitment to promoting the ability of the Cuban people to seek, receive, and impart information, by highlighting the most relevant exemptions and authorizations pertinent to supporting the Cuban people through the provision of certain internet and related telecommunications services.

LINK To Five-Page OFAC Document

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Senior Director For WHA At NSC In The White House Discusses Cuba. Doing "a series of other things."

The White House
Washington DC
9 August 2021

On-the-Record Press Call by National Security Council Senior Director for the Western Hemisphere Juan Gonzalez on Official Travel to Brazil and Argentina Via Teleconference

Excerpts

On Cuba, since the July 11th protests, we have been working to hold the regime accountable while, at the same time, doing everything we can to support the Cuban people. And in that regard, we've been doing a regular pace of sanctions of individuals involved in the crackdown against the July 11th protestors, and then doing everything to support the families of those who have been detained by increasing funding, working to expand Internet connectivity on the island, and a series of other things. So that continues.

Q Mr. Juan Gonzalez -- I would like to ask him if there was any request from the United States to the Argentinian government, to the government of Alberto Fernández, for Argentina support most the democratization of Cuba, Venezuela, or Nicaragua in terms of, for example, any declaration against the repression of the Cuban people by the government, in the case of Cuba, and if there was any request in that sense for Argentina to participate in the dialogue that the opposition and the Maduro’s regime will start in Mexico this week.

MR. GONZALEZ: Great. So, look, on the question of democracy and human rights in the region, Jake Sullivan mentioned, just as he did in Brazil, in Argentina, in the conversations with President Fernández, with Foreign Minister Solá, with Gustavo Beliz, and others that -- you know, that we have a -- we really have to break through the left-and-right mindset when it comes to promoting democratic values and that we need to really focus on a conversation with regard to democracies and countries that are not democracies if we are to ensure that, as a region, we maintain this international consensus in favor of democracy.

So, you know, I think we underscored the importance of breaking through this ideological problem that exists in the region, both in the left and the right, when it comes to democratic values and that, you know, we did raise the issue of Cuba, Nicaragua, Venezuela as one where we’re urging all countries, not just Argentina, to stand up for those ideals, given in particular the history that Argentina has suffered in the past.

And so, it's somewhere where there was a -- I think a very constructive conversation with the Argentines’ willingness to find areas of common ground and an interest in them being -- in being helpful. I mean, I think they made clear that they're not always going to agree with us on how -- on matters of approach, but that we're going to continue to have a very open and fluid dialogue when it comes to these matters.
And, you know, we believe that Argentina is a country that can speak to governments of both the left and the right, and can play an important role in encouraging the defense of democratic values. Particularly, I think, when you see in Nicaragua, which has been, you know, a move -- a very kind of concerning move toward authoritarianism in the run-up to the November elections.

And I think you'd also asked about the dialogue, sorry, on Venezuela. What I would say is -- is that we’re not -- we don't -- we're not the ones that get to pick who is seated at the table in the dialogue. I think that's a question, really, for the Unity Platform, led by the -- those Venezuelans that are in favor of democracy and the regime that is on the other side of that equation.

And, you know, I think our perspective -- which has been one that is articulated between the United States, Canada, and the European Union -- is that the international community is going to continue to push for free and fair elections, and we're going to use everything we can to press the regime to take concrete steps in that direction.

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Cuba Purchases Of U.S. Agricultural Commodity/Food Products Increase 94.4% Year-To-Year; June 2021 Increased 413% Compared To June 2020

ECONOMIC EYE ON CUBA©
August 2021

June 2021 Food/Ag Exports To Cuba Increase 413%- 1
51st Of 222 June 2021 U.S. Food/Ag Export Markets- 2
Year-To-Year Exports Increase 94.4%- 2
Cuba Ranked 54th Of 222 U.S. Ag/Food Export Markets- 2
June 2021 Healthcare Product Exports US$52,110.00- 2
June 2021 Humanitarian Donations US$306,697.00- 3
2021 Obama Administration Initiatives Exports Continue- 3
U.S. Port Export Data- 16


JUNE 2021 FOOD/AG EXPORTS TO CUBA INCREASE 413%- Exports of food products and agricultural commodities from the United States to the Republic of Cuba in June 2021 were US$28,256,268.00 compared to US$5,507,338.00 in June 2020 and US$18,815,665.00 in June 2019. 

June 2021 Exports Included: Chicken Leg Quarters (Frozen); Chicken Meat (Frozen); Chicken Legs (Frozen); Soybeans.

January 2021 through June 2021 exports were US$159,942,168.00 compared to US$82,236,262.00 for the period January 2020 through June 2020.

Since December 2001, agricultural commodity and food product exports reported from the United States to the Republic of Cuba is US$6,455,169,592.00.

This report contains information on exports from the United States to the Republic of Cuba- products within the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000, Cuban Democracy Act (CDA) of 1992, and regulations implemented (1992 to present) for other products by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and Bureau of Industry and Security (BIS) of the United States Department of Commerce.

The TSREEA re-authorized the direct commercial (on a cash basis) export of food products (including branded food products) and agricultural commodities from the United States to the Republic of Cuba, irrespective of purpose. The TSREEA does not include healthcare products, which remain authorized and regulated by the CDA.

LINK To August 2021 Report

Defining "Transformative"- Cuba Ratifies Decree-Law Authorizing SME's: Micro (1-10 employees), Small (11-35 employees), Medium (35-100 employees). The Private Sector Has Returned.

Regardless of the reasoning, the rationale, by the Diaz-Canel-Valdes Mesa Administration (2019- ) in Havana, the impact of the decisions during the last three months relating to re-empowering and re-emerging private sector is for the Republic of Cuba both transformative and irreversible.

Significantly, the regulatory changes by the government of the Republic of Cuba provide the Biden-Harris Administration (2021- ) with additional basis for re-engagement to support the private sector by authorizing direct investments, direct loans, direct correspondent banking, resurrecting U-turn banking transactions, and re-creating an efficient electronic and transparent remittance transfer platform.

AFP
Paris, France
7 August 2021


On Friday night, the Cuban government ratified a decree-law authorizing the operation of private and state small and medium-sized businesses, a measure geared toward economic reforms in the socialist state, in which public corporation prevails.

“The State Council approved the Decree-Law on Small and Medium Enterprises, which facilitates their inclusion in a coherent manner in the legal system as an actor affecting the productive transformation of the country,” a note on the page stated. Website of the National Assembly of People’s Power of Cuba.

The decision, long awaited by Cuban businessmen, comes nearly a month after unprecedented demonstrations erupted on July 11 and 12, chanting “We are hungry” and “Freedom” in more than 40 cities on the island, leaving dead and dozens injured. Hundreds were arrested.

“For the Cuban economy, not only in the economic sphere, but also in the historical sphere, this represents a giant step that will have consequences in the medium and long term” to reshape the national economy, O’Neill Diaz, consultant, told AFP specializing in business development and communications and public affairs in Cuba.

In a regular session of the State Council, in which President Miguel Diaz-Canel participated via video link, other measures aimed at developing non-agricultural cooperatives and self-employed or self-employed workers were approved.

– ‘A very important moment’ –

The assembly decided that small and medium businesses could be government, private or mixed and that small businesses could have from one to 10 employees, small businesses from 11 to 35 people and averaged up to 100 workers.

Last February, the government expanded more than 2,000 activities in which freelance workers can work in Cuba’s controlled economy. The government indicated in June that some activities authorized for independent workers would not be included in the SME list, such as “computer programmers, bookkeepers, translators and interpreters, pet or pet vets, designers and certain types of consultancy”. pointed out. Although that will be determined in the regulations which should be published soon.

Prime Minister Manuel Marrero Cruz said last June that the expansion of activities by private actors “does not lead to a privatization process, as there are limits that cannot be crossed.”

For O’Neill Diaz, this is “a very important moment in which many entrepreneurs from the private sector have spent years striving, working and trying to contribute to the national debate.” The government has recognized that small businesses are already operating on the island in a “disguised” fashion, but the legal framework can generate greater interest in these businesses.

For the US business community, the Díaz-Canel government has made an “important decision that may re-evaluate business interests” on the island, the Cuban-US Economic and Trade Council said last June when the Cuban government announced it would regulate small and medium-sized businesses.

Cuba is accelerating its reforms, while facing a deep economic crisis due to the coronavirus pandemic that has hit the tourism sector, the engine of its economy, and in the midst of an economic embargo imposed by the United States that has tightened under the governments of Donald Trump and Joe. Biden.

Prensa Latina News Agency
Havana, Republic of Cuba
7 August 2021


La Habana, 7 ago (Prensa Latina) El Consejo de Estado de Cuba, en su más reciente reunión ordinaria, aprobó ocho decretos-leyes vinculados al cumplimiento de la estrategia económico-social del país, informaron hoy medios locales.

De acuerdo con Esteban Lazo, presidente de ese órgano, las normas relativas al desarrollo de distintos actores económicos y el ordenamiento de otras actividades, fortalecen la institucionalidad y permiten avanzar en la actualización del modelo cubano, publicó el diario Granma.

Entre las disposiciones se encuentra el decreto-ley que regula la creación y funcionamiento de las micro, pequeñas y medianas empresas (Mipymes), aprobadas por el Consejo de Ministros en mayo y que pueden ser de propiedad estatal, privada o mixta.

La nación caribeña aspira a que el impulso de estas formas de producción dinamice aspectos como la diversificación de los renglones productivos, los encadenamientos con distintas industrias y el fomento del empleo.

El Consejo de Estado también emitió una disposición para las cooperativas no agropecuarias, donde regula elementos como su constitución, funcionamiento y extinción, con lo cual se elimina el carácter experimental con el que surgieron.

El ejercicio del trabajo por cuenta propia (sector privado) también estuvo entre los beneficiados con el paquete de normas aprobadas, al dar salida a dos relacionadas con dicha actividad.

Un decreto-ley específico actualiza las disposiciones generales para su desarrollo y define otros aspectos como el procedimiento para tramitar las autorizaciones, las relaciones con otras entidades e instituciones, además de ajustar el sistema de organización y control.

La segunda normativa está referida a las contravenciones personales en el ejercicio del trabajo por cuenta propia y establece las infracciones concernientes a ello, las sanciones y medidas aplicables, así como las autoridades facultadas para imponerlas y las vías para resolver inconformidades.

El desarrollo de estos actores económicos motivó también la aprobación de un decreto-ley Del Régimen Especial de Seguridad Social para los Trabajadores por Cuenta Propia, los Socios de las Cooperativas no Agropecuarias y de las Micro, Pequeñas y Medianas Empresas Privadas.

Asimismo, fue necesaria la modificación de varios elementos de la Ley Tributaria de 2012, asunto igualmente previsto en uno de los cuerpos legales adoptados.

Completan el paquete de disposiciones del Consejo de Estado las normas Sobre la Conservación, Mejoramiento y Manejo Sostenible de los Suelos y el Uso de los Fertilizantes; y de los Registros Públicos de Bienes Inmuebles, el cual estipula la organización y funcionamiento de estos.

English Translation (Google)

According to Esteban Lazo, president of that body, the norms related to the development of different economic actors and the ordering of other activities, strengthen the institutional framework and allow progress in updating the Cuban model, published the newspaper Granma. Among the provisions is the decree-law that regulates the creation and operation of micro, small and medium-sized enterprises (MSMEs), approved by the Council of Ministers in May and which can be state, private or mixed property.

The Caribbean nation aspires that the impulse of these forms of production stimulate aspects such as the diversification of the productive lines, the linkages with different industries and the promotion of employment.

The State Council also issued a provision for non-agricultural cooperatives, where it regulates elements such as their constitution, operation and extinction, thereby eliminating the experimental character with which they arose. The exercise of self-employment (private sector) was also among the beneficiaries of the package of approved regulations, when two related to said activity were released.

A specific decree-law updates the general provisions for its development and defines other aspects such as the procedure for processing authorizations, relationships with other entities and institutions, as well as adjusting the organization and control system. The second regulation refers to personal violations in the exercise of self-employment and establishes the infractions concerning this, the applicable sanctions and measures, as well as the authorities empowered to impose them and the ways to resolve non-conformities.

The development of these economic actors also motivated the approval of a decree-law of the Special Social Security Regime for Self-Employed Workers, Members of Non-Agricultural Cooperatives and Micro, Small and Medium Private Companies. Likewise, it was necessary to modify several elements of the Tax Law of 2012, a matter also provided for in one of the adopted legal bodies. The regulations on the Conservation, Improvement and Sustainable Management of Soils and the Use of Fertilizers complete the package of provisions of the State Council; and the Public Registries of Real Estate, which stipulates the organization and operation of these.

Granma
Havana, Republic of Cuba
5 August 2021

Micro, small and medium-sized businesses in Cuba: A smooth start

Minister of Economy and Planning Alejandro Gil Fernández explains new legal norms recently approved by the Council of Ministers, which will guide the functioning of these important economic actors

The first small private companies will emerge from currently operating groups of self-employed workers, like the successful Pinturas Coronas. Photo: Ricardo López Hevia

The creation in Cuba of micro, small and medium-size businesses (MSMEs), as part of the overhauling of the economic actors has risen an intensive debate and a lot of expectations, especially in the non-state sector. As it has was recently reported by Deputy Prime Minister and Minister of Economy and Planning (MEP) Alejandro Gil Fernández on Cuban television’s Mesa Redonda program, they are currently working at an accelerated pace in the norms that will rule the organization and functioning of these companies dedicated to the production of goods and services, conceived with legal personality, both for the state and private sector.

Regarding private MSMEs, he says “the first MSMEs will be created from the current businesses run by self-employed workers, a sector that hires a lot of workers”. In the case of state-run businesses, he explains, “we are conducting a study to see which organizations could join this experience, always with the priorities of the country as their main focus.”

“The first step is to organize what we already have,” the Economy Minister said referring to the undergoing restructuring, in a gradual manner and under the leadership of the Government, in order to “release the productive forces, lift hurdles and boost social responsibility among these economic actors.”

Meanwhile, Economy and Planning Deputy Minister Johana Odriozola Guitart, provided more details on the process of creation of the norms, in which the academy has been actively involved and they have considered the preparation of several legal provisions raging from the highest to the lowest levels of legislation hierarchy. “Right now, we are agreeing on the basic principles of the legislation,” she says and stresses how the creation of these new actors will bring benefits in the financial and hiring order to the businesses currently in operation.

MSMEs, which will have the same management model regardless of the type of property, will take the legal form of Private Limited Company, Odriozola Guitart continues. “It means that, unlike other countries, our norms will have a larger scope because we must regularize the characteristics of economic subjects that does not exist so far,” she underlines. The Deputy Minister explains that the norms are directed to both state and private property, although it does not rule out the existence of joint SMEs in the future.

The purpose of these norms are to provide a smooth start without bumps or legal vacuums. Subsequently, public policies will be evaluated in order to allow a bigger contribution and integration to put talent at the service of the country’s development, the deputy minister adds. Given the novelty of this topic in the Cuban economic landscape, the Minister of Economy and Planning noted that the ministry’s website has provided responses to some of the most frequently asked questions raised recently. The population can submit questions on the new legal framework for these economic actors to the email address: actoreseconomicos@mep.gob.cu.

Presented below are several examples:

How are businesses in Cuba classified as micro, small and medium-sized? MSMEs in Cuba are classified according to the number of workers involved: Micro: from 1 to 10. Small: from 11 to 35. Medium: from 36 to 100.

Is the classification by number of workers used worldwide? No, it is not. The number of workers is the most widespread criterion, but MSMEs can be classified based on other elements. The most commonly used are the volume of annual sales and the assets value. Monetary restructuring makes it more complex to adopt billing indicators for the MSMEs in Cuba for two main reasons: the new monetary order establishes only one type of exchange rate for all economy actors and it makes impossible to compare historical records with the current conditions.

What is understood as ‘occupied’? In the MSMEs, it includes all natural persons who take part in the activity of the business, both as members and as employees.

How many members can there be in an MSME? An MSME can be formed with as many members as the company deems necessary as long as they comply with the number of occupied people established by law.

What are the advantages of being a legal person? It grants access to financing and more favorable financing conditions, it increases credibility and trust among the clients and increases the chances of positioning a brand in the market and makes contract relationships easier. In the case of debts, the company can use the business equity to pay it off without affecting the personal equity of the partners and it allows to expand equity and bring in new members. Likewise, partners and employees can have access to the same social security benefits as state employees.

What is a Private Limited Company? It’s a business with equity divided in social shares and composed of the contributions from the members’ personal equity. The organization of this company means there is a separation between the personal equity of the members and the social equity of the company, since the members do not have to comply with the obligations acquired by the company with their own equity, but with the equity of the Private Limited Company.

Is social equity a must for the organization of a MSME? The MSME should be organized with social equity that should be reflected on the organization documents. A minimum social equity is not required. The contributions of all members makes the social equity of the MSME. Social equity has three main functions: Productivity: this function basically has an economic content, by which equity serves as capital funds to obtain profit, through the execution of the corporate purpose. It determines the position of the member in the company as it numerically provides the percentage of its engagement. Guarantee to creditors: as long as it is not possible to distribute profits because the company's net worth does not exceed that amount and allows creditors to know the company's net worth situation in order to meet their obligations.

What is the MSME liable for its obligations and what is the scope of its liability? The MSME is liable for its obligations to third parties with all the assets that make up its patrimony.

What will be the bodies of the MSME? The MSME will have the following bodies: Board: an assembly body in which agreements related to the operation of the company are adopted. Administrative body: responsible for the management and representation of the MSME. Supervisory and control body: oversees compliance with the provisions of the legislation in force. It will have its attributions determined in the legal norm, without prejudice that the partners may incorporate others. In the case of MSMEs with a single owner, it will obviously not be possible to create an assembly body. This body will include the sole partner. (Translated by ESTI)

Relevant Analyses

Cuba Links Resumption Of Remittances From United States To Expanding Investment Opportunities For Cuban Residents Abroad Aug 6, 2021

Cuba Expands Again Role Of Private Sector- Suppliers, Foreign Currency Access Aug 5, 2021

Cuba Suspends Tariffs And Fees For Non-Commercial (SME's Next?) Solar Systems. Another Opportunity For Biden-Harris Administration To Support U.S. Exporters And Florida Companies Should Benefit. Jul 30, 2021

Biden-Diaz-Canel Remittance Compromise: U.S. And Cuba Companies Suspend Transaction Fees Until 31 December 2021. Impact On 800 Publix Markets Jul 27, 2021

U.S. Department Of State Memorandum: The 17 Company Members Of The CRWG- Moving Remittances And Using Remittances; Cuba Entities Need Be Part Of The Process Jul 26, 2021

If A Product Costs At Least 2,500 Pesos (US$104.16), Customers In Cuba Now May Obtain Financing: Terms Are 2.5% Interest With 20% Down Jul 24, 2021

Aprueban-en-Cuba-decretos-l.jpg
The first small private companies will emerge from currently operating groups of self-employed workers, like the successful Pinturas Coronas. Photo: Ricardo López Hevia

The first small private companies will emerge from currently operating groups of self-employed workers, like the successful Pinturas Coronas. Photo: Ricardo López Hevia

Cuba Links Resumption Of Remittances From United States To Expanding Investment Opportunities For Cuban Residents Abroad

Prensa Latina News Agency
Havana, Republic of Cuba
6 August 2021

Havana, Aug 6 (Prensa Latina) Cuba is willing to promote opportunities for its nationals residing abroad to contribute to the country, but obstacles such as the US blockade impedes investments, an official from the Foreign Ministry said the eve.

According to Ernesto Soberón, director general of Consular Affairs and Attention to Cuban Residents Abroad, the possible participation in projects of socioeconomic development in the nation opens a door in the links between the island and Cubans living in other latitudes.

He specified that the initiatives can be related to the private sector, local development projects and cooperation exchanges.

Similarly, the official recalled that people look at remittances not only in their traditional use of buying goods and services, but also as the possibility of investing in a business that generates income for the family in Cuba.

However, it is still necessary to create the legal bases and consider another series of issues necessary for an effective implementation of this entire process, Soberón acknowledged to the publication OnCuba. 'In all this they are working, beyond the manipulation on the subject there will always be by certain media and sectors,' he said.

However, the diplomat pointed out, although for someone to invest in a country they must bring money, market or technology, the main difficulty, not only for Cubans, but for everyone, is to transfer the cash to the Caribbean nation due to to the permanence of the blockade imposed by the United States.

The same happens in the case of remittances and their possible use in enterprises, he stressed. 'If the North American government obstructs these shipments, if it prevents the money from arriving, that is another problem for the Cuban community that does not depend on what Cuba can do. That is the responsibility of the United States', he emphasized.

In this sense, Soberón described as absurd the speech that tries to accuse Havana with this issue by saying that the limitation of remittances is due to the fact that the Antillean government keeps all or part of it. In the end, the permanence of Washington's coercive measures only seek to create difficulties, social unrest and people's discontent, he remarked. For almost six decades, the White House has applied an economic, commercial and financial blockade to Cuba that reported losses of more than 147 thousand 853 million dollars.

LINKS TO RECENT ANALYSES

Cuba Suspends Tariffs And Fees For Non-Commercial (SME's Next?) Solar Systems. Another Opportunity For Biden-Harris Administration To Support U.S. Exporters And Florida Companies Should Benefit. Jul 30, 2021

Biden-Diaz-Canel Remittance Compromise: U.S. And Cuba Companies Suspend Transaction Fees Until 31 December 2021. Impact On 800 Publix Markets Jul 27, 2021

U.S. Department Of State Memorandum: The 17 Company Members Of The CRWG- Moving Remittances And Using Remittances; Cuba Entities Need Be Part Of The Process Jul 26, 2021

If A Product Costs At Least 2,500 Pesos (US$104.16), Customers In Cuba Now May Obtain Financing: Terms Are 2.5% Interest With 20% Down Jul 24, 2021

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Cuba Expands Again Role Of Private Sector- Suppliers, Foreign Currency Access

Resolution 52 - 2021 on the Financial Procedure to be applied in retail sales in foreign currency Through Resolution No. 52/2021 of the MEP it is approved that the forms of non-state management are also contracted as suppliers of the commercial network in freely convertible currency, incorporating them in the financial procedure to be applied, as another step in the similar conditions of performance of the economic actors of our society.

LINK To Resolution 52-2021 (Spanish)
LINK To Resolution 52-2021 (English)

Resolution No. 52/2021

WHEREAS: Agreement 5959 of the Executive Committee of the Council of Ministers of April 2, 2007, in its second section, numeral 7, establishes as one of the specific functions of the Ministry of Economy and Planning participation in the preparation and proposals of actions for the administration and distribution systematic analysis of the country's currencies, including facilities and returns, taking into account take into account the established priorities and exercise control over the decisions adopt.

WHEREAS: As part of the measures aimed at strengthening the industry national, was approved the hiring of non-state forms of management such as suppliers of the commercial network in freely convertible currency in this sense it is necessary to insert them in the financial procedure to be applied to sales retailers in foreign currency and consequently repeal Resolution 221 of 14 October 2019 from the Minister of Economy and Planning.

THEREFORE: In the exercise of the faculty that has been conferred on me in subsection d) of article 145 of the Constitution of the Republic of Cuba,

I RESOLVE FIRST: Approve the following:

“FINANCIAL PROCEDURE TO APPLY TO THE RETAIL SALES IN FOREIGN CURRENCIES

Article 1. Importing entities selected by the Ministry of Commerce Foreign and Foreign Investment, which are defined in the corresponding regulation of that body, request the Central Bank of Cuba to open a bank account in foreign exchange, for income from retail sales made in that country currency.

Article 2. One hundred percent (100%) is paid to the aforementioned bank account. of the currencies that are obtained by the sales that are made in that currency.

Article 3. The liquidity received in these accounts from sales is used by the entities referred to in article 1, to replace the goods that are they trade in currencies or acquire others for sale in the same currency.

Article 4. The replacement or acquisition of the merchandise can be done through importation, purchase on consignment, in the national industry, in another entity of the economy, or to the forms of non-state management.

Article 5.1. When the replacement is carried out by importation, this can be executed with payments on demand or on credit, with or without bank instruments; in both In cases, payment is made using the cash in the foreign currency account. 2. In credit purchases, funds must be reserved for the payment of the obligation. upon expiration.

Article 6. When the replacement is made through the purchase of merchandise in consignment, payment is made with the currencies entered into said bank account, in accordance with the procedures established in the country.

Article 7. In the event that the replacement is made by way of purchase from the industry national, payment is made in foreign currency, from the bank account used for this purpose.

Article 8. When the entities referred to in article 1, order payments from your foreign currency accounts to Cuban peso accounts (CUP), at the exchange rate established, of the entities of the national industry for the sales that these carried out, the Central Bank of Cuba will credit one hundred percent (100%) of the liquidity in the corresponding liquidity capacity (CL) accounts.

Article 9. The entities of the national industry use the Cuban pesos and the corresponding liquidity they receive for this concept, for the production of goods and the provision of services for retail sales in foreign currency.

Article 10. In the event that the replacement is made by means of the purchase to another entity of the economy, whose account is not denominated in CUP, the payment is made in foreign currency and said entity will operate in accordance with what is currently established.

Article 11.1. Once the banking-financial mechanisms are established in the country to access loans with or without liquidity support, the entities of the National industry, or others from the economy, can take these financing to make productions for sale in foreign currency. 2. With the income from sales in foreign currency to the entities to which it is referred to in article 1, they amortize the financing received and can take new credits to guarantee the continuity of the production process.

Article 12.1. When the entities referred to in article 1, order payments from their foreign currency accounts to non-state management for sale, these are received in the accounts in freely convertible currency that are enabled at the respect and in accordance with the provisions of the Central Bank of Cuba, the eighty (80) percent of what is billed to the entity. 2. The entities of article 1 are in charge of applying the percent (%) mentioned in the previous article, transfer that amount to the account in the form of non-state management and release the remaining twenty (20) percent to central liquidity. 3. The equivalent value in Cuban pesos at the official exchange rate of twenty (20) percent released, it is transferred by the entities of article 1 to the account in CUP previously defined by the form of non-state management.

Article 13. Activity levels and other indicators related to these operations, are taken into account by the subjects of the plan in the elaboration and execution of the economy plan.

SECOND: Repeal Resolution 221, of October 14, 2019, issued by the that solves.

THIRD: This resolution enters into force three (3) days after its publication in the Official Gazette of the Republic of Cuba.

BE PUBLISHED in the Official Gazette of the Republic of Cuba. FILE the original signed at the Legal Directorate of this Ministry.

GIVEN in Havana, on July 12, 2021.

Alejandro Gil Fernandez, Minister

Granma
Havana, Republic of Cuba
5 August 2021

Micro, small and medium-sized businesses in Cuba: A smooth start

Minister of Economy and Planning Alejandro Gil Fernández explains new legal norms recently approved by the Council of Ministers, which will guide the functioning of these important economic actors

The first small private companies will emerge from currently operating groups of self-employed workers, like the successful Pinturas Coronas. Photo: Ricardo López Hevia

The creation in Cuba of micro, small and medium-size businesses (MSMEs), as part of the overhauling of the economic actors has risen an intensive debate and a lot of expectations, especially in the non-state sector. As it has was recently reported by Deputy Prime Minister and Minister of Economy and Planning (MEP) Alejandro Gil Fernández on Cuban television’s Mesa Redonda program, they are currently working at an accelerated pace in the norms that will rule the organization and functioning of these companies dedicated to the production of goods and services, conceived with legal personality, both for the state and private sector.

Regarding private MSMEs, he says “the first MSMEs will be created from the current businesses run by self-employed workers, a sector that hires a lot of workers”. In the case of state-run businesses, he explains, “we are conducting a study to see which organizations could join this experience, always with the priorities of the country as their main focus.”

“The first step is to organize what we already have,” the Economy Minister said referring to the undergoing restructuring, in a gradual manner and under the leadership of the Government, in order to “release the productive forces, lift hurdles and boost social responsibility among these economic actors.”

Meanwhile, Economy and Planning Deputy Minister Johana Odriozola Guitart, provided more details on the process of creation of the norms, in which the academy has been actively involved and they have considered the preparation of several legal provisions raging from the highest to the lowest levels of legislation hierarchy. “Right now, we are agreeing on the basic principles of the legislation,” she says and stresses how the creation of these new actors will bring benefits in the financial and hiring order to the businesses currently in operation.

MSMEs, which will have the same management model regardless of the type of property, will take the legal form of Private Limited Company, Odriozola Guitart continues. “It means that, unlike other countries, our norms will have a larger scope because we must regularize the characteristics of economic subjects that does not exist so far,” she underlines. The Deputy Minister explains that the norms are directed to both state and private property, although it does not rule out the existence of joint SMEs in the future.

The purpose of these norms are to provide a smooth start without bumps or legal vacuums. Subsequently, public policies will be evaluated in order to allow a bigger contribution and integration to put talent at the service of the country’s development, the deputy minister adds. Given the novelty of this topic in the Cuban economic landscape, the Minister of Economy and Planning noted that the ministry’s website has provided responses to some of the most frequently asked questions raised recently. The population can submit questions on the new legal framework for these economic actors to the email address: actoreseconomicos@mep.gob.cu.

Presented below are several examples:

How are businesses in Cuba classified as micro, small and medium-sized? MSMEs in Cuba are classified according to the number of workers involved: Micro: from 1 to 10. Small: from 11 to 35. Medium: from 36 to 100.

-Is the classification by number of workers used worldwide? No, it is not. The number of workers is the most widespread criterion, but MSMEs can be classified based on other elements. The most commonly used are the volume of annual sales and the assets value. Monetary restructuring makes it more complex to adopt billing indicators for the MSMEs in Cuba for two main reasons: the new monetary order establishes only one type of exchange rate for all economy actors and it makes impossible to compare historical records with the current conditions.

What is understood as ‘occupied’? In the MSMEs, it includes all natural persons who take part in the activity of the business, both as members and as employees.

How many members can there be in an MSME? An MSME can be formed with as many members as the company deems necessary as long as they comply with the number of occupied people established by law.

What are the advantages of being a legal person? It grants access to financing and more favorable financing conditions, it increases credibility and trust among the clients and increases the chances of positioning a brand in the market and makes contract relationships easier. In the case of debts, the company can use the business equity to pay it off without affecting the personal equity of the partners and it allows to expand equity and bring in new members. Likewise, partners and employees can have access to the same social security benefits as state employees.

What is a Private Limited Company? It’s a business with equity divided in social shares and composed of the contributions from the members’ personal equity. The organization of this company means there is a separation between the personal equity of the members and the social equity of the company, since the members do not have to comply with the obligations acquired by the company with their own equity, but with the equity of the Private Limited Company.

Is social equity a must for the organization of a MSME? The MSME should be organized with social equity that should be reflected on the organization documents. A minimum social equity is not required. The contributions of all members makes the social equity of the MSME. Social equity has three main functions: Productivity: this function basically has an economic content, by which equity serves as capital funds to obtain profit, through the execution of the corporate purpose. It determines the position of the member in the company as it numerically provides the percentage of its engagement. Guarantee to creditors: as long as it is not possible to distribute profits because the company's net worth does not exceed that amount and allows creditors to know the company's net worth situation in order to meet their obligations.

What is the MSME liable for its obligations and what is the scope of its liability? The MSME is liable for its obligations to third parties with all the assets that make up its patrimony.

What will be the bodies of the MSME? The MSME will have the following bodies: Board: an assembly body in which agreements related to the operation of the company are adopted. Administrative body: responsible for the management and representation of the MSME. Supervisory and control body: oversees compliance with the provisions of the legislation in force. It will have its attributions determined in the legal norm, without prejudice that the partners may incorporate others. In the case of MSMEs with a single owner, it will obviously not be possible to create an assembly body. This body will include the sole partner. (Translated by ESTI)

Relevant Analyses

Cuba Links Resumption Of Remittances From United States To Expanding Investment Opportunities For Cuban Residents Abroad Aug 6, 2021

Cuba Expands Again Role Of Private Sector- Suppliers, Foreign Currency Access Aug 5, 2021

Cuba Suspends Tariffs And Fees For Non-Commercial (SME's Next?) Solar Systems. Another Opportunity For Biden-Harris Administration To Support U.S. Exporters And Florida Companies Should Benefit. Jul 30, 2021

Biden-Diaz-Canel Remittance Compromise: U.S. And Cuba Companies Suspend Transaction Fees Until 31 December 2021. Impact On 800 Publix Markets Jul 27, 2021

U.S. Department Of State Memorandum: The 17 Company Members Of The CRWG- Moving Remittances And Using Remittances; Cuba Entities Need Be Part Of The Process Jul 26, 2021

If A Product Costs At Least 2,500 Pesos (US$104.16), Customers In Cuba Now May Obtain Financing: Terms Are 2.5% Interest With 20% Down Jul 24, 2021

Screenshot 2021-08-05 at 19-14-43 Ministerio de Economía y Planificación de Cuba.png

European Union Member France's CMA CGM S.A. Is 41st Company Sued Using Libertad Act- Shipping To Cuba Through Jamaica And Using Port Mariel

Marseille, France-based CMA CGM S.A. (2020 revenues approximately US$31.5 billion) has “a presence in 160 countries through 755 offices, 750 warehouses, 110,000 employees and a wide fleet of 566 vessels, CMA CGM serves 420 of the world’s 521 commercial ports and operates 285 shipping lines.” CMA CGM S.A. has served the Republic of Cuba marketplace since 2000 and was “the first international company to sign such a logistics development agreement in Cuba.” The company is represented in the Republic of Cuba by Havana, Republic of Cuba-based Navemar S.A.

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL; EMMA RUTH BLANCO, in her personal capacity, and as Personal Representative of the ESTATE OF ALFREDO BLANCO ROSELL, JR; HEBE BLANCO MIYARES, in her personal capacity, and as Personal Representative of the ESTATE OF BYRON BLANCO ROSELL; SERGIO BLANCO DE LA TORRE, in his personal capacity, and as Administrator Ad Litem of the ESTATE OF ENRIQUE BLANCO ROSELL; EDUARDO BLANCO DE LA TORRE, as Administrator Ad Litem of the ESTATE OF FLORENTINO BLANCO ROSELL; LIANA MARIA BLANCO; SUSANNAH VALENTINA BLANCO; LYDIA BLANCO BONAFONTE; JACQUELINE M. DELGADO; BYRON BLANCO, JR.; MAGDALENA BLANCO MONTOTO; FLORENTINO BLANCO DE LA TORRE; JOSEPH E. BUSHMAN; CARLOS BLANCO DE LA TORRE; and GUILLERMO BLANCO DE LA TORRE; Plaintiffs, v. CMA CGM S.A. (a/k/a CMA CGM THE FRENCH LINE; a/k/a CMA CGM GROUP); CMA CGM (AMERICA) LLC. [1:21-cv-22778]

Berliner Corcoran & Rowe LLP (plaintiff)
Horr, Novak & Skipp P.A. (plaintiff)
Fields PLLC (plaintiff)
Law Offices of John S. Gaebe P.A. (plaintiff)

LINK To Complaint (7/30/21)
LINK To Libertad Act Lawsuit Filing Statistics

Excerpts

As discussed more fully below (infra at ¶¶ 97 - 136), CMA CGM has trafficked and continues to traffic in the Confiscated Property, the claims to which are owned by Plaintiffs, since the opening of the Port of Mariel, more than 6 years ago. According to the International Maritime Organization (“IMO”), a specialized agency of the United Nations responsible for regulating shipping, vessels operated and directed by CMA CGM have repeatedly trafficked in the Confiscated Property by “calling” at the Terminal de Contenedores del Mariel (“TCM” or “Container Terminal”), which is part of the Port of Mariel within the Zona Especial de Desarrollo Mariel (“ZEDM”) (a/k/a Mariel Special Economic Zone) and within the Bay of Mariel,8 and while calling at the Container Terminal, engaged in commercially beneficial transactions and other commercial activities with the Container Terminal, Almacenes Universales S.A. (also known as “AUSA”),9 and/or the ZEDM. CMA CGM profits by, from and through the business activities of the CMA CGM operated vessels that call at the Port of Mariel.

As discussed more fully below (infra at ¶¶ 117 – 126), Defendant’s trafficking includes Defendant acting as the carrier for cargo shipments from multiple U.S. Ports, including PortMiami in Miami-Dade County, Florida, to the Port of Mariel. According to Bills of Lading on file with U.S. Customs and Border Protection, Defendant has served as the carrier for at least 602 cargo shipments from various U.S. Ports to the Port of Mariel, the final destination declared. Defendant first carries the containers to Kingston, Jamaica, where the containers are off-loaded and then loaded onto other ships (including some ships owned by Defendant) and are then carried to the Port of Mariel, the declared final destination.

CMA CGM Group
Marseille, France
10 May 2015


The CMA CGM Group is pleased to announce that Rodolphe Saadé, CMA CGM Group’s Vice-Chairman, signed in Cuba in the presence of President François Hollande and of Mr Matthias Fekl the French Minister of State for Foreign Trade, on May 11th, an unprecedented agreement. This agreement covers the operation and development of a logistics platform on the port of MARIEL, in cooperation with the major Cuban logistics company: AUSA. CMA CGM, [is] the first international company to sign such a logistics agreement. CMA CGM LOG, the CMA CGM Group’s subsidiary dedicated to logistics, will contribute to the operations of this new area. The platform will be part of MARIEL ZEDM – Zona Especial de Desarrollo Mariel, Cuba Special Economic Zone project. ZEDM is a strategic 4,600 ha logistics and industrial project area for Cuba. This agreement is symbolic regarding Cuba’s goods and services development. CMA CGM LOG will operate a 17 ha logistics platform with AUSA, including: 12,000 square meters warehouses, 5,000 cubic meters of reefer warehouses. CMA CGM LOG will be in charge of: the goods unbundling and distribution on the island the exports consolidation; the import and export goods warehousing; containers distribution; empty and full containers storage. CMA CGM has been present in Cuba since 2000 and is one of the only three shipping companies to call the country. It is the first international company to sign such a logistics development agreement in Cuba.

Created in 2001, CMA CGM LOG is the CMA CGM Group’s subsidiary specialized in freight forwarding and logistics solutions. Its 1,000 experts offer logistics solutions that are complementary to maritime services in 36 countries, including air freight, multimodal transport, custom clearance, warehousing and distribution… After a sustained growth in 2014 and the opening of offices in 6 new countries, CMA CGM LOG accelerates its development in 2015.

American Airlines Survives: Judge Quotes John Adams. Libertad Act Lawsuit Dismissed- Plaintiff Has Standing, But Inheritance Came Too Late.

On 2 August 2021, the United States Court of Appeals for the Fifth Circuit in New Orleans, Louisiana, issued a published opinion in the Glen vs. American Airlines Libertad Act Title III lawsuit. The Court held that there is Article III standing for a Libertad Act plaintiff, and vacated the portion of the opinion of the District Court for the Northern District of Texas finding that Glen lacked Article III standing. As support for the Court’s holding, it cited to the opinions of Judge Bloom in the Havana Docks vs. Norwegian Cruise Lines litigation in the Southern District of Florida and Judge Stark in the Glen vs. Trip Advisor litigation in the District of Delaware. The Court, however, ultimately held that Glen inherited his claim too late to bring suit, and therefore entered judgment for the defendant. This is the first appellate opinion addressing the Article III standing issue and the first precedential (published) opinion addressing the inheritance issue.

The Plaintiff may choose to seek a further review by the full Fifth Circuit and/or may seek review from the United States Supreme Court.

ROBERT M. GLEN V. AMERICAN AIRLINES, INC., [1:19-cv-23994 Southern Florida District; 4:20-cv-00482-A Transferred To Northern Texas District; 5th Circuit Court of Appeals 20-10903]

Reid Collins & Tsai (plaintiff)
Ewusiak Law, P.A. (plaintiff)
Jones Day (defendant)
Kelly Hart & Hallman LLP (defendant)

LINK To Opinion (8/2/21)
LINK To Libertad Act Title III Lawsuit Statistics

Excerpts From Opinion

“The Founders recognized that the protection of private property is indispensable to the promotion of individual freedom. As John Adams tersely put it, ‘[p]roperty must be secured, or liberty cannot exist.’” Cedar Point Nursery v. Hassid, 141 S. Ct. 2063, 2071 (2021) (quoting Discourses on Davila, in 6 Works of John Adams 280 (C. Adams ed. 1851)). Channeling that spirit, Congress responded to Fidel Castro’s widespread confiscation of property in Cuba by enacting the Helms-Burton Act into law in 1996. See 22 U.S.C. § 6021 et seq. The Act allows any United States national with a claim to property confiscated by the Cuban Government to sue any person who traffics in such property. Id. § 6082(a)(1)(A).

In that same spirit, we disagree with the district court’s decision to dismiss Robert Glen’s claim under the Act for lack of standing. We side instead with courts that have held that “the legally cognizable right provided by the Helms-Burton Act to the ‘rightful owners’ of properties” confiscated by Castro “allows [those property owners] to assert a concrete injury based on Defendants’ alleged ‘trafficking’ in the [those] [p]roperties.” Glen v. Trip Advisor LLC, 2021 WL 1200577, at *6 (D. Del. Mar. 30, 2021). See also Havana Docks Corp. v. Norwegian Cruise Line Holdings, Ltd., 484 F. Supp. 3d 1215, 1227–27 (S.D. Fla. 2020) (same).

But Glen’s claim ultimately fails on the merits because it does not satisfy certain statutory requirements under the Act. If the property giving rise to suit was confiscated before March 12, 1996, a United States national may not bring an action under the Act unless he acquired ownership of the claim before March 12, 1996. 22 U.S.C. § 6082(a)(4)(B). We agree with the district court’s alternative conclusion that this time limit is fatal to this suit, because the property in which Glen claims an ownership interest was confiscated before 1996—yet he did not inherit his claim to that property until after 1996. Accordingly, we vacate the district court’s dismissal of the case for lack of standing and render judgment for the defendant.

Glen has standing to sue. But he acquired ownership of the properties through inheritance after 1996, so his claim fails on the merits. Accordingly, we vacate the dismissal of the case for lack of standing and render judgment for the defendant.

Because this issue is dispositive, we need not address the district court’s alternative rationale for dismissal on the merits—Glen’s purported failure to plead that American acted with the requisite knowledge and intent.

Judge In Libertad Act Lawsuit Against Seaboard Marine Dismisses 17 Plaintiffs; Remaining Plaintiff Wins Rulings- They Own The Property. Seaboard Trafficked And Knew It Was Trafficking. Settlement?

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL, Plaintiff, v. SEABOARD MARINE, LTD., Defendant. [1:20-cv-25176; Southern Florida District].

Horr, Novak & Skipp, P.A. (plaintiff)
Law Offices of John S. Gaebe (plaintiff)
Berliner Corcoran & Rowe LLP (plaintiff)
Fields (plaintiff)
Barakat Law (plaintiff)
Morgan, Lewis & Bockius LLP (defendant)

Order On Motion To Dismiss (7/27/21)
LINK TO LIBERTAD ACT TITLE III LAWSUITS STATISTICS

Excerpts From Ruling:

There are eighteen Plaintiffs in this action, including Odette Blanco de Fernandez (“Ms. Fernandez”), the estates of her four deceased siblings Alfredo Blanco Rosell, Byron Blanco Rosell, Enrique Blanco Rosell, and Florentine Blanco Rosell (“Estates”), and the descendants of the Blanco Rosell Siblings (“Inheritors”) (collectively, “Plaintiffs”). See ECF No. [45] ¶¶ 16-33.

For the reasons set forth below, the Motion is granted in part and denied in part.

On September 29, 1960, the Cuban Government announced the confiscation without compensation of all assets owned by the Blanco Rosell Siblings, including: Maritima Mariel, Central San Ramón, Azucarera Mariel, along with their property, rights, and shares—i.e., the 70-Year Concession and land owned by these entities (“Confiscated Property”). Id. ¶¶ 74-75 (quoting Cuban Official Gazette, Resolution No. 436, at 23406 (Sept. 29, 1960) (English Translation)). Following the Cuban Government’s confiscation, the Blanco Rosell Siblings fled Cuba and became United States citizens before March 12, 1966. Id. ¶ 5.

Defendant is an ocean transportation company that operates vessels between the United States and the Caribbean Basin. Id. ¶ 34. The Amended Complaint alleges that beginning on or about May 9, 2019, Defendant operated approximately twenty-four voyages where its vessels sailed from the Port of New Orleans to the Port of Mariel in Cuba.

Defendant now moves to dismiss the Amended Complaint, arguing that the Amended Complaint fails to plausibly allege that: (1) Defendant trafficked in the Confiscated Property; (2) Defendant “knowingly and intentionally” trafficked in the Confiscated Property; and (3) Plaintiffs, other than Ms. Fernandez, have an actionable ownership interest in the Confiscated Property. See ECF No. [52]. In their Response, Plaintiffs take the opposing position on each of Defendant’s bases for dismissal.

Upon review, the Amended Complaint sufficiently alleges that Defendant engaged in “commercial activity using or otherwise benefited from” the Port of Mariel and the container terminal without Plaintiffs’ authorization, thereby trafficking in Plaintiffs’ Confiscated Property.

Defendant maintains that Plaintiffs’ allegation regarding trafficking must fail because it “merely tracks the statutory definition[.]” ECF No. [52] at 14 (citing 22 U.S.C. § 6023(13)(A)(ii)). The Court is not persuaded.

Defendant further contends that “the container terminal is not property to which Plaintiffs[] own a claim that could provide a basis for their Title III claims” because the Port of Mariel and its container terminal were constructed in March of 2009 and, therefore “decades after the Cuban Government confiscated the property in 1960.” ECF No. [52] at 14. However, the Amended Complaint sufficiently sets forth that in constructing the Port of Mariel and its container terminal in ZEDM, the Cuban Government exploited the same rights that were granted to the Blanco Rosell Siblings in the 70-Year Concession.

Additionally, the Court is not convinced that Plaintiffs should somehow be precluded from asserting a Title III claim because the Cuban Government enhanced and/or changed the nature of the Confiscated Property following its illegal confiscation. Holding as such would certainly undermine Congress’ stated goal of protecting the claims of United States nationals whose property was wrongfully confiscated by the Cuban Government. See 22 U.S.C. § 6022(6) (one reason for passing Title III was “to protect United States nationals against confiscatory takings and the wrongful trafficking in property confiscated by the Castro regime.”).

The Amended Complaint also plausibly alleges that Defendant trafficked in the Confiscated Property through the acts of the ZEDM.

At this stage of the proceedings, the Court is satisfied that Plaintiffs have sufficiently pled an ownership interest in the Confiscated Property.

Thus, the Amended Complaint plausibly alleges that Defendant participated in, and profited from, the Cuban Government’s confiscation and possession of the Confiscated Property without Plaintiffs’ authorization.

Lastly, Defendant seeks dismissal of the Inheritors and Heirs from this action, arguing that they do not have an actionable ownership interest in the Confiscated Property because they acquired their claims after March 12, 1996.6 The relevant provision of the LIBERTAD Act provides: “In the case of property confiscated before March 12, 1996, a United States national may not bring an action under this section on a claim to the confiscated property unless such national acquires ownership of the claim before March 12, 1996.” 22 U.S.C. § 6082(a)(4)(B) (emphasis added). The unambiguous language of § 6082(a)(4)(B) instructs that a United States national cannot bring an action under Title III “unless such national” acquires an interest to the confiscated property before March 12, 1996. Id. The statutory language also makes clear that the United States national who acquired ownership of the claim must be the same United States national who brings the Title III action.

The Court agrees that the Inheritors have not plausibly alleged that they acquired claims to the Confiscated Property before March 12, 1996. Indeed, because each of the deceased Blanco Rosell Siblings died after March 12, 1996, the Inheritors could not have acquired a claim to the Confiscated Property before the statutory cutoff. ECF No. [45] ¶¶ 17-20. In their Response, Plaintiffs effectively urge the Court to disregard the plain language of Title III, as well as the clear guidance from every court that has addressed this precise issue—including the Eleventh Circuit. See Gonzalez v. Amazon.com, Inc., 835 F. App’x 1011, 1012 (11th Cir. 2021) (per curiam).7 The Court declines to do so. Accordingly, because the Inheritors did not acquire their claims to the Confiscated Property until after the statutory cutoff, they cannot maintain an action under Title III.

Similarly, the Estates do not have an actionable ownership interest in the Confiscated Property and cannot maintain a Title III action on behalf of the deceased Blanco Rosell Siblings. The Eleventh Circuit has instructed that “[i]n the absence of an expression of contrary intent, the survival of a federal cause of action is a question of federal common law.”

While there is no dispute that the deceased Blanco Rosell Siblings acquired their claims to the Confiscated Property before March 12, 1996, ECF No. [45] ¶¶ 17-20, the Court disagrees that “the estates and personal representatives ‘stepped into the shoes’ of the decedents [and] maintain[ed] the original acquisition date of the Confiscated Property[.]”

Indeed, it is well-settled that upon the death of the four Blanco Rosell Siblings, their assets became property of their respective estates and no longer belonged to them individually.

The following Plaintiffs are dismissed from this action: (1) Estate of Alfredo Blanco Rosell; (2) Estate of Byron Blanco Rosell; (3) Estate of Enrique Blanco Rosell; (4) Estate of Florentino Blanco Rosell; (5) Emma Ruth Blanco; (6) Liana Maria Blanco; (7) Susannah Valentina Blanco; (8) Hebe Blanco Miyares; (9) Lydia Blanco Bonafonte; (10) Jacqueline M. Delgado; (11) Byron Diaz Blanco, Jr.; (12) Magdelena Blanco Montoto; (13) Sergio Blanco; (14) Florentino Blanco de la Torre; (15) Joseph E. Bushman; (16) Carlos Blanco de la Torre; and (17) Guillermo Blanco De La Torre.

Seaboard-Marine-refrigerated-containers-1.jpg

President Biden Meets With Individuals Of Cuban Descent To Discuss Policy And Regulatory Options; Background Call Provides Details; White House Press Briefing Mentions Cuba

The White House
Washington DC
30 July 2021


Remarks by President Biden Before Marine One Departure- South Lawn

Q Mr. President, do you want to open travel with Cuba again? Do you want to open travel with Cuba, Mr. President?
THE PRESIDENT: I just had a long --

The White House
Washington DC
30 July 2021

Remarks by President Biden at Meeting with Cuban American Leaders

THE PRESIDENT: Well, I’m honored to welcome members of the Cuban American community, and Senator Menendez, Senator [Congressman] Meeks to discuss how the United States is going to continue to stand with the Cuban people, who have suffered for decades and decades under a failed communist regime.

Earlier this month, Cubans took to the street in a historic demonstration of the will of the people of Cuba. The regime responded with violence and repression, mass detentions, sham trials, and people disappearing who — who have spoken out. Just disappearing. Family members, I’m told, are not able — have no idea where their family members are back in Cuba. And — in a brazen violation of the rights of the Cuban people. The Cuban Americans are hurting. They’re hurting because their loved ones are suffering. And it’s, quite frankly, intolerable. So, I want the Cuban Americans to know that we — all around this table and myself included — see your pain, we hear your voices, and we hear the cries of freedom coming from the island.

The United States is taking concerted action to bolster the cause of the Cuban people. We’ve brought to bear the strength of our diplomacy, rallying nations to speak out and increase pressure on the regime. And we’re holding the regime accountable.

Last week, we sanctioned the head of Cuban armed forces and the government — a government entity called the “Black Berets” for their involvement in suppressing protesters. And, today, we are adding sanctions against the Revolutionary National Police, as well as individual sanctions against the chief and deputy chief — the chief and deputy chief. And we’re going to continue to add sanctions on individuals that carry out — that carry out the regime’s abuses. At the same time, we’re increasing direct support for the Cuban people by pursuing every option available to provide Internet access to help the Cuban bypass — the Cuban people bypass the censorship that’s being mandatorily imposed. You always know something is not going well when the — a country will not allow — will not allow their people to be engaged in — be on the Internet and being able to make their case known around the world. And we’re expanding our assistance to political prisoners and dissidents.

And the direct State — and I’ve directed the State Department and the Treasury Department to provide me, within one month, recommendations of how to maximize the flow of remittances to the Cuban people, without the Cuban military taking their cut. And we’re working to increase U.S. staffing at our embassy while prioritizing the safety of our personnel.

So, we’ve got a lot to discuss with this group. So, we got — and mostly, I’m here to listen. I want to know what their ideas are. And you are some of the best experts on the issue. The first person to bring this to my attention and to make sure that we were on top of this was Senator Menendez. And we think that — you know, the American — the Cuban American people are actually the best ambassadors for the Cuban people. And so, my administration is going to make sure that their voices are included and uplifted at every step of the way. And we’re gong to get down to business. So, thank you all for bothering to come in. I appreciate it.

Q Will there be more sanctions coming up, Mr. President? Or is that it, today?
THE PRESIDENT: I beg your pardon?
Q I said: Will there be more sanctions against Cuba coming up or are you stopping with what you did today?
THE PRESIDENT: We are — there will be more, unless there’s some drastic change in Cuba, which I don’t anticipate. Thank you.

In attendance for the President’s meeting:
Senator Bob Menendez (D-NJ)
Representative Gregory Meeks (NY-5), Chair, House Foreign Affairs Committee
Maria Carla Chicuen, Executive Director, CasaCuba at Florida International University
Manny Diaz, Chair, Florida Democratic Party
Emilio Estefan, Grammy Award Winning Artist, Activist
L. Felice Gorordo, CEO, eMerge Americas & Co-Founder, Roots of Hope
Ricardo Herrero, Executive Director, Cuba Study Group
Ana Sofia Pelaez, Founder, Miami Freedom Project
Carmen Pelaez, Playwright, Activist
Marley Pulido, Co-founder, La Luchita Project & Cubanos Pa'Lante
Yotuel Romero, Grammy Award Winning Artist & Activist
Cedric Richmond, Assistant to the President & Senior Advisor & Director of the White House Office of Public Engagement
Jake Sullivan, Assistant to the President & National Security Advisor
Julie Rodriguez, Moderator, Deputy Assistant to the President and Director for Intergovernmental Affairs
Emmy Ruiz, Deputy Assistant to the President & Director of Political Strategy & Outreach
Juan Gonzalez, Special Assistant to the President & Senior Director for the Western Hemisphere for the National Security Council
Ernie Apreza, Senior Advisor for Public Engagement

The White House
Washington DC
30 July 2021

Background Press Call by a Senior Administration Official on Cuba

SENIOR ADMINISTRATION OFFICIAL: Thanks so much, and good afternoon, everyone. Thank you for joining us this afternoon. And welcome to an on-background conference call where we’ll be -- we’ll be discussing Cuba. For your reference, today we are joined by [senior administration official]. And from this point on, we'll be referring to them as a “senior administration official,” per the ground rules of the call. We'll start with some quick remarks, and then we'll open it up for question-and-answer. The contents of today's briefing will be embargoed until 3:45 p.m. this afternoon. And as always, if you have follow-up questions, feel free to email me or the NSC press team distro at DL.NSC.Press@NSC.eop.gov. And with that, I’ll turn the floor over to [a senior administration official].

SENIOR ADMINISTRATION OFFICIAL: Thank you, [senior administration official]. It's been a busy week at the White House and the administration in general on Latin America.

You all saw on Monday that Secretary Blinken -- the State Department released a joint statement with 20 countries condemning the crackdown on peaceful protesters in -- that came out into the streets all over Cuba on July 11th. We also rolled out this week, as you saw, the Central America collaborative migration and root causes strategy. On Thursday, we met with the Mexican delegation to think really strategically about how we can look at migration management beyond the bilateral relationship and looking at a, kind of, hemispheric approach to migration management.

You saw that we put up the Federal Register notice on Haiti temporary protected status and it marked the date to -- you know, to reflect since the assassination of President Jovenel Moïse. And we have rolled out the President’s intention to nominate a well-respected academic and former policymaker at the Defense Department, Frank Mora, as the U.S. ambassador to the Organization of American States.

What the President is doing today is -- is part of what has been a very active period of engagement in response to the July 11th protests. And he is doing -- he's going to take the time to meet with members of the Cuban American community, as well as Senator Robert Menendez, Chairman of the Senate Foreign Relations Committee, and Greg Meeks, the Chairman of the House Foreign Affairs Committee.

And basically, the President wants to hear directly from the community on not just the goings on and -- but, frankly, what the President has said, which is how to hold the Cuban regime accountable for its violations of human rights, but also, at the same time, focusing on responding to the needs of the Cuban people. So, what we are -- in addition to that conversation, we have Treasury Department, the Office of Foreign Assets Control, is going to have sanctions that are going to be coming out today. I can't get into specifics except to say that-- except that one entity and two Cuban individuals are going to be designated pursuant to the Global Magnitsky Human Rights Accountability Act for their role in human rights abuses.

You know, I already mentioned Frank Mora, that we are in talks with private sector providers about the possibility of providing wireless LTE communications to the Cuban people, which we consider to be a right. We're including all options, but we're also looking at other ways to make sure that the Cuban people have the right to information, the right to communicate with each other, and the international community can really see the abuses that are taking place.

We are also going to be talking about humanitarian support for the Cuban people. And we're going to have a few points to mention with regard to explaining the way forward for the remittance working group and just plans for the embassy staffing going forward.

So, but again, really the focus here is to hear from members of Congress that have been active on this issue from -- from members of the Cuban American community. And it follows on engagements by Congressman Cedric Richmond, senior advisor to the President, meeting with a much larger group of members of the community, but also meetings that I have had, at the request of Senator Menendez, with the Cuban American National Foundation, but also Cuba Decide, to hear all points of views on Cuba and really to try to do what's best to provide the President and the Secretary of State with our best objective analysis and recommendations on the way forward following the July 11th protests in Cuba. So, I'll leave it there. I'm happy to enter into any -- answer any questions.

Q Thank you. And thank you, [senior administration official], for doing this. And thank you, [senior administration official]. One question regarding to the team at the State Department that is studying the possibilities and measures in order to help Cubans with the remittances and Internet without helping or providing support, if I can say that in that way, to the regime: Is there any specific measure that you can advance or tell us about these two possibilities? I mean, sending remittances without using the Cuban bank system is quite difficult. There is no other bank system in Cuba that is not controlled by the regime. And providing Internet, it seems that it would be a kind of activity that the -- it would violate the Cuban sovereignty of the territory, and it could create maybe a counterproductive situation. I mean, what are the real options besides just repeating that you are studying that and you're studying and trying to identify technical solutions? Is there anything concrete that you can tell us today?

SENIOR ADMINISTRATION OFFICIAL: Yeah, thanks. I'm not going to get out ahead of the President. I think anything that's discussed at the meeting will -- will be rolled out afterward. But, you know, you hit two very -- two, you know, very real challenges when it comes to Internet connectivity, but also the issue of remittances. On the latter, look, I'll say that technology is advancing every day. And in the example of Venezuela, for example, we've actually been able to roll out licenses that have allowed, you know, the interim government to send money directly to people in Venezuela. And so, what I think is really important here is we have looked at recommendations that even came out under the previous administration. They put together a Internet communications working group that issued a series of recommendations. We looked at those. But then, what we want to do is, we put together a U.S. government group together. They're going to consult with, you know, members of Congress, with the experts, and try to make some recommendations on how -- on what's the best way to go forward. The point here is -- again, is maximizing the benefit to the Cuban people, and that really has to be the focus of everything that we do in this situation.

With regard to Internet connectivity, there are no silver bullets. If it's something that could be done easily, it would have been done already in places like Iran and in other closed regimes. You know, but -- we see the access to -- we see the censorship of information as a violation of human rights. And so we're going to explore every option possible to be able to guarantee that access to that information. But also, in a -- you know, in a transparent manner, what our Cuban democracy programs and our Google programs do is -- is actually support, you know, civil society, artists, musicians to be able to do what they do without any sort of ideological objective, but just to do -- practice their craft and -- but that also includes access to information, the ability to communicate with each other, but also the importance of making sure that that the international community is not blind to the abuses and the crackdown that's being perpetrated by the Cuban regime.

Q Hello. Thank you for taking my question. Here at the White House, we've seen massive protests lately that included thousands of Cuban Americans who are asking for more action from this administration -- that includes Republican legislators, as well. I have two questions. The first one is: Is this administration -- or the President, for that matter -- meeting with any Republican legislators -- not necessarily today, but maybe in the following days or in the previous days? And also, can you give us full -- not a full, but maybe like some -- a list of the participants that are going to be taking part in this meeting with the President later on today? And is the administration -- has the administration a set plan towards Cuba? Or is it open to new ideas that might come out either from the participants today or from legislators in Congress? Thank you.

SENIOR ADMINISTRATION OFFICIAL: Yeah, thanks for the question. So, look, we've been -- we've been listening to the protesters, you know, when -- I'm here on the weekends. And, you know, we've been listening to them and we've been talking to members of the community. And I will say that, when I say “we,” I mean the administration. The State Department has been regularly briefing members of Congress from the House and the Senate. And, of course, we -- I think the dialogues that Congressman Richmond, that I have engaged in, but also at the State Department and others have been engaging in are to he- -- are to listen to Cuban Americans.

It's important to really listen to their voices and what they're calling for, and -- but also to -- really to make sure that we keep the focus not on the United States or the conflict with the United States and Cuba, but rather on the Cuban people and the rights that they're demanding. And the focus the international community needs to be to stand up for them, to stand up for their rights, and to make sure that we're doing everything to support them, including, by any means, to prov- -- you know, provide -- efforts to provide humanitarian assistance. As you know, those who are political dissidents are be -- are abandoned by the government. They don't have access to basic necessities. They don't have access to hospital services. They're cut off -- they and their families are cut off. And so, I think it's important for the international community to stand up for these people.

So, I mean, I guess -- you asked if the President had already made up his mind on Cuba policy or if he's willing to hear more from the community. My response to that is that that's why he's holding these meetings, but also why he's receiving daily updates on the situation and why the State Department primarily has been engaging regularly with members of Congress to hear their views. And that's why, for example, the remittance working group is one that is going to be engaging with members of Congress to try to get, you know, as much guidance as possible. I mean, I don't know -- I think that answers your question.

Q Hi, good afternoon. Thanks for doing this call. Just to clarify, should we expect an announcement today on Internet access or on remittances or not? And secondly, on the sanctions, I know you don't want to give information in advance of the OFAC release, but just a general question: How effective do you think that these sanctions on Cuban officials can be, since 50 years of embargo and sanctions have not succeeded in changing their (inaudible) behavior?

SENIOR ADMINISTRATION OFFICIAL: Yeah, no, on the second question, that's an important question. Look, what we're doing through these individual sanctions, as the President has said, is that we are focusing on individuals and entities that are involved in the crackdown and the violation of human rights by the regime. Part of it is to layer on sanctions, but the other one is to make sure that we are keeping these individuals in the spotlight not just on the international community, but that the Cuban people know that the United States is supporting them and is trying to defend them. So, we're going to -- as the President said, the sanctions are rolled out that -- last week were just the beginning. And we're going to try to keep -- we're going to do everything we can to keep Cuba on the front burner so that they can talk about -- keep the conversation on the -- on the rights of the Cuban people and their -- and their right to manifest peacefully. And so the other -- sorry, what was the other question you had? I didn’t get the first question.

Q Oh, okay. Sorry. My question was whether we can expect an announcement today on --(inaudible) remittances.

SENIOR ADMINISTRATION OFFICIAL: Yeah, thank you. So, look, we are going to be -- we're going to be announcing a series of things. And, you know, those include efforts to improve Internet connectivity and other means to make sure that we are supporting the ability of the Cuban people to communicate with each other. And we see information as something that should be treated as a human right.

Q Thank you very much. To follow up on that: Are you going to be announcing anything on remittances? Are you going to be announcing anything on our diplomats going back to Havana and theirs coming back to Washington? And if the President wanted to hear from all points of view -- at least you haven't mentioned any Republicans who are going to be present -- is Senator Rubio or any other Republican members or senators going to be present?

SENIOR ADMINISTRATION OFFICIAL: Great, thank you. So, he is going to be making -- he is going to be making announcements on both. Either in the meeting or afterward, I think he’s going to be -- some of it he’ll mention, you know, at the camera spray at the top. Some of it may come up at the meeting. I think the focus is going to be on hearing from members of the community. And -- but we do have plans to provide more information on the Remittance Working Group that he directed the U.S. government to form and plans for U.S. Embassy augmentation. What I'll say is it that, look -- given the protests of July 11th, it is important for U.S. diplomats to engage directly with the Cuban people. And if we can do that in a way that is -- that ensures the safety of U.S. personnel, that is something that -- that we will undertake. But we'll be able to say something more about that -- the meeting. So, what the focus of the meeting today -- and the participants, and I can mention some of them -- is -- are members of the Cuban American community. They are going to be the ones that are going to be the main speakers here. And we invited the respective Chair of the Senate Foreign Relations Committee and the Chair of the House Foreign Affairs Committee to join the conversation as well. But we're going to have individuals like Felice Gorordo, who is the CEO of eMerge Americas and has worked for Republican and Democratic administrations. We're going to also be hearing from Yotuel Romero, who is the Grammy Award winning artist and activist that wrote the song “Patria y Vida.” We have, also, members of the religious community -- Father Fernando Eduardo Heria, Director of the National Shrine of Our Lady of Charity of Cuba. And actually, several other people have been -- have been invited. But again, in the conversations that we've been having, we've been meeting with people across the political spectrum and folks that have a range of views. And so, I think it’s going to be only the beginning of a regular engagement with the Cuban American community so that we can develop the right policies to support the Cuban people. Thank you.

Q Hi. This is Anne Gearan with the Post. It -- following on a couple of questions about the Internet connectivity: I mean, can you give us some specifics here, please, about what might be possibilities? I mean, one thing that's been reported is the potential to do balloons off the island. Other things that have been reported have been ways for the United States to direct Internet toward Cuba. Are those what's under discussion here? Can you help us out a little bit so that we have something that we can actually report at 3:45? And secondly, on the Internet, is there anything that you all could do in terms of connectivity that could not be blocked by the regime? Thank you.

SENIOR ADMINISTRATION OFFICIAL: So, I can't offer you many details on what we're doing or what we're going to be announcing because I don't want to get ahead of the President. But what I'm saying is we've been -- we heard, you know, the -- Governor Ron DeSantis wrote a letter to the President. Senator Marco Rubio wrote a letter. We've been hearing also in our consultations with -- the administration's consultations with members of Congress, and we've been exploring all those options.

So, the administration, (inaudible) the Department of Commerce, Department of Treasury, the FCC have been looking at what rulemaking authorizations, licenses we can provide that would allow any of those options to work. But we're looking at -- when we're talking to private sector companies and looking at all the legal and technical restrictions to doing that, it's challenging because whether you're looking at satellite technology or balloons or anything, a lot of those signals are fairly easy to block. But we have to explore any and all options to -- exhaust any and all options to provide Internet connectivity.

The other point I'll mention, just in terms of -- and this is, obviously, open source information -- is that the regime actually cut Internet for, I think, between 30 minutes and an hour, maybe a little bit more, and after that was involved in selective blocking of websites and areas where there were specific protests. In that regard, there are tools and there's technology that civil society actors are able to use to circumvent censorship. There's been a dramatic increase in their use of VPN technology, (inaudible) proxies. And so all of those are -- you know, it's all unclassified, it's all out there. And it's really about making sure that the Cuban American people have -- or the Cuban people have the training and have the technical know-how and the tools to be able to do that.

And obviously, the goal is to support it so that the Cuban people can communicate with each other. And that information about the regime’s abuses can make it out into the -- and be seen by the international community. So we have funds in the Open Technology Fund. There's work that we have with international partners. And so there are a lot of different options, and we're trying to exhaust all of them to make sure that we're doing everything possible to support those Cubans that are out in the streets -- that were out in the streets demanding their rights.

The White House
Washington DC
30 July 2021

Press Briefing by Principal Deputy Press Secretary Karine Jean-Pierre

Q And a question with respect to Cuba and the ongoing policy review. I know there's a meeting today, but has there been any movement on actionable steps? Specifically, does the President plan to lift travel restrictions between the U.S. and Cuba, and make it easier for Cuban Americans to send money to their relatives on the island, both of which are issues he campaigned on?

MS. JEAN-PIERRE: Yeah, no, and both important issues that we understand to the Cuban people. So we're not going to preview any specific actions here. That is not something that I'm going to do from the podium.
I will say that on the remit- -- remittances, this is a complex issue that requires coordination with experts that will help to inform the administration's policy. So, at the President's direction, the Department of Treasury and State will form a remittance working group to review available options to establishing those channels.

Q Karine, may I follow up, please, on Cuba? Right -- right back here. May I follow up on Cuba, please? Thank you so much. You may have noticed those protests last week across the street from the White House. I don't know if you or anybody from the White House happened to speak to those protesters, but I did. And it’s anecdotal, of course, but they say they see no difference between the policy of President Biden towards Cuba and the policy of former President Obama towards Cuba. Is the approach the same of those two Presidents -- of President Biden currently and the former President, President Obama?

MS. JEAN-PIERRE: So, I'm going to be really clear here. So, since day one, we have said many times -- many, many times -- that the Cuban Americans are the best ambassadors for freedom and prosperity in Cuba, is what I said at the beginning. Today, the President is going to sit down and -- to meet with Cuban Americans, leaders at the White House -- that's what he's going to do in just a few hours -- to discuss the demonstrations and the administration's response. And so -- including applying new sanctions on Cuba -- on Cuban leaders and establishing Internet access for the Cuban people. So, we want to lift up the Cuban people, and that is going to be our focus. On July 22nd, The Treasury -- the Treasury's Office of Foreign Assistant [Assets] Control sanctioned one of the Cuban individuals and one Cuban entity for serious human rights abuses and the repression of peaceful pro-democratic protests in Cuba that began on July 11th. So we are going to continue to lift up the Cuban American people that -- I'm sorry, the Cuban people -- and we're going to have a conversation. As I just mentioned, the President will have one today, and we'll probably have more to read out from that.