U.S. Federal Court Rules Bacardi Must Use USPTO Rules For "Havana Club" Trademark Issue.

Bloomberg- (7 April 2022)- Court lacks judicial review under the Lanham Act.  Bacardi, Cubaexport in decadeslong battle over mark.  Bacardi U.S.A. Inc. lost a lawsuit against the U.S. Patent and Trademark Office after a Virginia federal court found it didn’t have the ability to review whether the agency should have renewed a Cuban rum maker’s “Havana Club” trademark registration. 

Bacardi and Cubaexport, the Cuban government agency that makes and sells the rum internationally, have been in a decadeslong fight over who owns the rights to the Havana Club trademark.  Bacardi, a Florida-based rum maker, argued that the USPTO violated the Administrative Procedure Act by allowing Cubaexport to renew its rights to Havana Club in 2016. Bacardi sells rum internationally using the Havana Club mark and has a trademark application that has been pending since 1994. The Havana Club mark was originally owned and registered in the U.S. by Cuban rum maker Jose Arechabala SA, but the Cuban government took control of the company’s assets in 1960 following the revolution there. Congress passed a law in 1998 that “prevented the registration of trademarks that were seized by the Cuban Government,” the court said.  

The U.S. Office of Foreign Assets Control denied Cubaexport a license to renew its registration in 2006, but reversed course a decade later. Bacardi argued the renewal will doom its pending application for the same trademark, and that the court should cancel Cubaexport’s trademark.  Judge Liam O’Grady of the U.S. District Court for the Eastern District of Virginia ruled that judicial review of the USPTO’s actions was improper in this case. Judicial review under the APA doesn’t apply when the statute in question, in this instance the Lanham Act, precludes it, O’Grady said. The court said the Lanham Act provides detailed procedures for how to contest trademark registrations, which means Bacardi already has a remedy through traditional trademark litigation. Bacardi is part of a pending 2004 lawsuit against Cubaexport over the Havana Club trademark in a Washington, D.C., federal court.  “Congress did not allow for challenges to another party’s registration by filing civil suit against the USPTO,” the court said.  The Lanham Act also explicitly precludes the USPTO director, a defendant in the case, from facing civil action, the court said.  

Kelley Drye & Warren LLP and Covington & Burling LLP represent Bacardi. The U.S. Attorney’s Office represents the USPTO. The case is Bacardi & Company Limited v. United States Patent and Trademark Office, E.D. Va., No. 1:21-cv-01441, 4/6/22. 

(Reuters- 7 April 2022)- The U.S. Patent and Trademark Office has defeated a lawsuit brought by rum maker Bacardi & Co in Virginia federal court over the PTO's revival of a Cuba-owned trademark that the liquor giant uses on American rum. The court said Wednesday that Bacardi could not sue the PTO directly in the liquor giant's long-running dispute with Cuba's state-run Cubaexport over the "Havana Club" trademark, and must challenge the trademark through the PTO itself. 

Bacardi attorney Michael Lynch of Kelley Drye & Warren said Thursday that the company is disappointed with the decision and was considering an appeal.  Bermuda-based Bacardi's founders were exiled from Cuba after the Cuban revolution. Bacardi says the Cuban government unlawfully seized the "Havana Club" mark along with other assets from Cuban company Jose Arechabala SA in 1960. Cubaexport and French spirits company Pernod Ricard sell "Havana Club" rum outside of the United States. Bacardi bought Jose Arechabala's brand and began selling Havana Club rum in the United States in 1995.

Bacardi's December lawsuit against the PTO said Cubaexport's trademark registration should have expired after it failed to get a license from the U.S. Treasury Department's Office of Foreign Assets Control in 2006. It challenged the agency's decision to renew Cubaexport's trademark in 2016 after OFAC changed course. Bacardi also said its pending application to register its own "Havana Club" mark will likely be refused because of Cubaexport's mark. U.S. District Judge Liam O'Grady said Wednesday that the court could not review the renewal under federal trademark law, and that Bacardi's only recourse was to ask the PTO to cancel Cubaexport's registration.  He rejected Bacardi's argument that the court should hear the case because the PTO does not have a process for challenging a trademark based on an improper renewal.  O'Grady also noted that Bacardi already went through PTO proceedings and has challenged the agency's decisions in Washington, D.C., federal court, in a case that is still pending.  The PTO declined to comment. 

The case is Bacardi & Co v. U.S. Patent and Trademark Office, U.S. District Court for the Eastern District of Virginia, No. 1:21-cv-01441.  For Bacardi: Michael Lynch, Damon Suden and Cameron Argetsinger of Kelley Drye & Warren; and David Zionts of Covington & Burling 

Read more:

Bacardi sues USPTO over renewal of Cuban 'Havana Club' trademark

Bacardi demands U.S. explain giving Havana Club brand to Cuba

Airbnb Successfully Lobbied Trump Administration. Airbnb Should Now Focus On Biden Administration To Advocate For Direct Correspondent Banking So Hosts In Cuba May Access Funds Directly, Efficiently.

At Peak Year, There Were 40,000 Airbnb Listings In Cuba Whose Hosts Were Paid Approximately US$60 Million.   

Airbnb Spent US$250,000.00 To Successfully Lobby Trump-Pence Administration (2017-2021) To Exempt Private Homes From Its Restrictions.  

Airbnb Should Now Direct Its Energies Towards The Biden-Harris Administration (2021- ) To Advocate For Direct Correspondent Banking So Hosts In Cuba May Access Funds Directly, Efficiently, And Transparently. 

The Less Airbnb Hosts In Cuba Pay To Receive Their Payments, The More Funds Will Be Available For Investments In Their Properties. 

San Francisco, California-based Airbnb, Inc. (2021 revenues US$6 billion.  The company reported that its Host community had six million active listings and earned US$34 billion in 2021). 

In 2015, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury authorized Pompano Beach, Florida-based Stonegate Bank to have an 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 provides commercial operating accounts for the Embassy of the Republic of Cuba in Washington, DC and the Permanent Mission of the Republic of Cuba to the United Nations in New York City; the financial institution also handles other types of OFAC-authorized transactions.  In September 2017, Stonegate Bank was purchased by Conway, Arkansas-based Home BancShares (2021 assets approximately US$17.7 billion) through its Centennial Bank subsidiary.      

Despite intense advocacy, the Obama-Biden Administration (2009-2017) National Security Council (NSC) inexplicably and stubbornly to permit BICSA a correspondent account with Stonegate Bank, so Stonegate Bank was required to use third country financial institutions.  Transactions for approximately eighty (80) customers were managed on a regular basis through Panama City, Panama-based Multibank, which had dealing with Republic of Cuba government-operated financial institutions in the Republic of Cuba.   

Absent bilateral direct correspondent banking accounts, the payment process for funds from the United States to the Republic of Cuba and from the Republic of Cuba to the United States remains triangular rather than a straight line- which would be more efficient, more secure, more transparent, more timely (same day versus two or more days), and less costly.  

NOTE: Since the first exports of agricultural commodities from the United States to the Republic of Cuba in December 2001, more than US$6,622,784,996.00 has been received as payment from the Republic of Cuba- every penny through a third country where a financial institution takes a fee.  

Grupo Aval Of Colombia Purchase Of Multibank 

On May 11, 2020 Grupo Aval informed that its subsidiary Banco de Bogotá (through its subsidiary Leasing Bogotá S.A. Panamá) has agreed to amend the purchase agreement for up to 100% of the outstanding common shares (the “SPA”) of Multi Financial Group, Inc. (“MFG”), parent company of Panamanian bank Multibank.  From Grupo Aval On 16 June 2020: “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.”     

“Grupo Aval Acciones y Valores S.A. (“Grupo Aval”) is an issuer of securities in Colombia and in the United States.  As such, it is subject to compliance with securities regulation in Colombia and applicable U.S. securities regulation.  Grupo Aval is also subject to the inspection and supervision of the Superintendency of Financeas holding company of the Aval financial conglomerate.  

The OFAC should rephrase existing regulations to make easier, more transparent, and less costly for entrepreneurs in the Republic of Cuba to engage with their counterparts in the United States and for entrepreneurs in the United States to engage with their counterparts in the Republic of Cuba.  Only an individual absent private sector commercial experience would believe strangling the movement of capital benefits the United States in its re-engagement with the re-emerging private sector (self-employed) the Republic of Cuba.  

If the Biden-Harris Administration wants to increase the demand from entrepreneurs in the United States to re-engage with entrepreneurs in the Republic of Cuba, and simultaneously frustrate the Miguel Diaz-Canel Administration (2018- ) in the city of Havana, then increase, overwhelm the supply of the means of production.  This begins with the efficient and transparent movement of capital.   

Does This Make Sense?  Initially, It Does- But Then Falls Apart   

Today, an individual subject to United States jurisdiction 1) may travel to the Republic of Cuba 2) use credit cards and debit cards in the Republic of Cuba 3) open a bank account in the Republic of Cuba 4) use a bank, credit union, or money services business to process remittances to or from the Republic of Cuba 5) utilize online payment platforms to facilitate or process authorized transactions involving the Republic of Cuba and 6) send remittances (gifts not loans or investments) to certain individuals and independent non-governmental organizations in Cuba that encourage the development and operation of private businesses by self-employed individuals.  

Today, a company subject to United States jurisdiction 1) may process credit and debit card transactions for individuals traveling to, from, or within the Republic of Cuba, and related settlements, for third-country financial institutions 2) financial institutions may have a correspondent account at a financial institution in the Republic of Cuba 3) financial institutions in the Republic of Cuba may not have a correspondent account with a United States financial institution 4) banking institutions are not permitted to process “U-turn” transactions, i.e., funds transfers originating and terminating outside the United States, where neither the originator nor the beneficiary is a person subject to United States jurisdiction 5) may export medical equipment, medical instruments, medical supplies, pharmaceuticals, informational materials, artwork, agricultural commodities and food products 6) may import agricultural commodities, artwork, informational materials, and products produced by registered self-employed and 7) may import medications for clinical trials and create joint ventures to market the medications.  

Here is the rub: Mr. Smith from Washington DC may have an account at a bank in Havana, but Mr. Smith may not directly transfer any money from his checking account in Washington DC to his account at the bank in Havana.  He may transfer the funds from Washington to Paris and then from Paris to Havana.  If Mr. Smith wants to have an investment in an independent business in Havana, wants to receive payment for a product or service sold to an independent business, wants to send additional funds, or receive a profit-sharing payment from an independent business, United States regulations do not permit him to do so.   

Today, when receiving payment from the Republic of Cuba or sending payment to the Republic of Cuba there is no straight-line transaction.  It is a triangle.  And often not an equilateral triangle or isosceles triangle.  Distance can create an acute triangle or obtuse triangle.  In banking, triangles are harmful, not helpful.    

A financial institution in a third country is always involved- and it receives a fee for that involvement.  Is the triangle necessary?  No.  Does the triangle provide the United States government with increased opportunities to monitor the transactions?  No.  Does the triangle increase the cost for an individual subject to United States jurisdiction and company subject to United States jurisdiction?  Yes.  Does the triangle increase the cost to a Republic of Cuba national and Republic of Cuba-based company?  Yes.  

Inflicting as much pain as possible upon those engaging in a transaction involving the United States was never logical as it served as a perpetual boomerang of pain for those involved in statutorily protected export transactions.  The message to agricultural interests in the United States- you may legally export your products to the Republic of Cuba, but by the time you are done, you wish you hadn’t done so.  That is an inspirational message from the taxpayer-funded United States Department of State, United States Department of the Treasury, United States Department of Agriculture, and United States Department of Commerce?  Reminds of… “We’re from the government and here to help…”    

United States policy is not solely focused upon increasing the financial costs associated with engagement with the Republic of Cuba.  The focus is also upon increasing inefficiencies for each transaction.  The goal is to assault individuals and companies with an upper cut (increased costs) and a body blow (inefficiencies) and a left jab (multiple compliance layers for each transaction).  Most companies do not wait for a TKO or KO, they throw in the towel.  

When a United States-based financial institution employee reads “Cuba” on any document (outgoing or incoming), there is a nearing 100% certainty the transaction will be subjected to additional compliance review and then returned to the customer- even if the transaction is specifically authorized.  If the transaction makes it past an employee, computer systems will most certainly flag it and terminate it.  Financial institutions in the United States are warry of all Republic of Cuba-related transactions.  For the farmer awaiting payment for a shipment of poultry, soybeans, corn, wood, and other products, the delay is unhelpful to their already challenging bottom-line.    

One-Way Correspondent Banking Does Not Work  

Sending investment funding and providing loans to someone who wants to have or wants to expand a small business can be transformative.  Is not the goal of the Biden Administration to extract as many Republic of nationals as possible from commercial and economic reliance upon the government of the Republic of Cuba?  

Would not be impactful for registered self-employed and Micro, Small and Medium-Size Enterprises (MSMEs) to open hundreds, thousands of accounts at financial institutions in the Republic of Cuba?  Where they could receive funds transparently and directly from their investor or customer within hours.  Where they could deliver profit-sharing funds and supplier payments transparently and directly within hours.  Each transaction transparent and compliant with United States financial institution regulations.  Yes, the transaction activity could overwhelm the financial sector within the Republic of Cuba- but, would that be such an undesired outcome?  The financial sector would be required to meet the demand or explain to customers the reasons for the failure to adapt to the marketplace.  

The Republic of Cuba may not embrace direct correspondent banking due to the requirements of the United States Department of the Treasury, United States Department of Justice, and United States Federal Reserve for all correspondent accounts regardless of country.  Again, there is a point here- let it be the Republic of Cuba who declines to re-establish a “normalized” financial landscape with the United States.  

Regarding the re-authorization of “U-turns” where financial institutions were permitted to process non-United States-related transactions involving the Republic of Cuba, the prism through which a decision to again permit “U-turns” should not be solely whether permitting “U-turns” benefits the Republic of Cuba.  It does.  More important is the transparency required for “U-turns” which remains an important goal of the United States.  Also, not permitting “U-turns” is an additional reason for financial institutions to avoid all Republic of Cuba-related authorized transactions.   

If the Biden-Harris Administration wants “prosperity in Cuba” then it should re-calibrate the means to that end.  Doing so will demonstrate removing impediments for re-engagement with the self-employed in the Republic of Cuba is the most efficient means of creating indigestion for the government of the Republic of Cuba.  

No one in the United States must engage commercially with the Republic of Cuba.  The Biden-Harris Administration must seed the garden.  Those seeds must be focused upon making easier and more transparent the movement of funds and the use of those funds.  And commercial engagement with the Republic of Cuba should not have a unique “carve-out” for individuals of Cuban descent who are subject to United States jurisdiction.  The Biden-Harris Administration should ensure that all individuals subject to United States jurisdiction are subject to the same regulations as those regulations relate to commercial engagement with the Republic of Cuba.   

Link To Related Post 

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 

Rest of World
New York, New York
4 April 2022

How Airbnb reshaped Cuba’s tourism economy in its own image
The booking platform was a game changer on the island, but the embargo still fosters some tension between Cubans and the U.S. company.

By Leo Schwartz and Lidia Hernández-Tapia  

Lorelis García de la Torre hails from the Cuban city of Camagüey but has always loved the stately old colonial homes of Havana, many crumbling and long past their glory days. She left Cuba in 2006, first for Spain and then Canada. Shortly after, the country’s tourism industry heated up, with aspiring entrepreneurs buying up properties to turn into casas particulares, private homes available for rent. In 2014, she made an offer on a two-story house in the neighborhood of Vedado. 

Three years later, she opened the newly renovated house for business, naming it Casa Brava. But instead of renting it out through word-of-mouth or booking agencies, as Cubans had done for years, she first listed it on Airbnb. “It was the only way I knew of where Cubans had access and could receive payments,” she said.  

But Airbnb didn’t just offer Cubans like García de la Torre a means of renting their properties to tourists in a simple and centralized way. According to interviews with hosts, guides, service workers, and hotel industry professionals, Airbnb fundamentally changed the way that tourism operates on the island, replacing the country’s decades-old casa particular system and transforming entire neighborhoods to serve the needs of new clients with different expectations. Airbnb declined to be interviewed for this article.

Lorelis García de la Torre bought a two-story house in Havana and turned it into a rental property on Airbnb. Lorelis García de la Torre  

The uniquely Cuban system of casas particulares grew out of the country’s so-called Special Period, after the fall of the Soviet Union in the early 1990s. The government began to open up the housing market, allowing for the sale of private homes for tourist accommodation. Ricardo Torres Pérez, an economist and research fellow at American University, in Washington D.C., said that, as a result, “the number of visitors grew exponentially.”  The casas particulares offered something that other accommodations couldn’t. “Before it was a business, it was somebody’s home,” said Alison Coelho, who has been leading tourism experiences in Cuba since 2000.  

The model felt, and looked, not so different from the one Airbnb pitched when it was founded in 2008. “Hotels leave you disconnected from the city and its culture,” the company’s original pitch deck read. “Book rooms with locals.” 

“Airbnb is definitely a continuation of the casa particular model,” said Tom Popper, an expert on Cuban tourism from 82° West Consultants, a firm focused on business entry to Cuba.  

Airbnb entered the Cuban market in 2015 to much fanfare, as President Obama eased travel restrictions. In its first year of operations, the platform brought 4,000 of Cuba’s estimated 20,000 casas particulares onto its platform. Current data provided to Rest of World from the short-term rental data provider AirDNA shows that by May 2017, the total number of Airbnb listings had topped 20,000, essentially subsuming the casa particular market. Listings peaked at almost 35,000, the summer before Covid-19.  According to tourism experts, Airbnb made the casa particular model easier for both guests and owners, providing a place to not only list properties but make payments, rather than rely on word-of-mouth and cash. Furthermore, people like García de la Torre were buying properties to list them on Airbnb — people from not only Cuba but other countries like Italy and Spain as well.  Airbnb’s entry into Cuba coincided with an increase in tourism to the island overall, with the number of travelers growing by over 50% between 2014 and 2018. Tourism from the United States nearly quadrupled between 2015 and 2018. 

Yusleidys Pérez Ugarte, a travel agent who worked with the government until the pandemic hit, said that the expansion of private home rentals under Airbnb quickly took precedence over the hotel industry. “It’s not a secret to anyone that the hotels in Cuba are expensive and don’t have the best service,” she said. “During Obama’s term, when relations improved and Americans began to come, the private houses expanded because hotels could not keep up.” 

According to residents, neighborhoods in Havana began to transform under the new influx of development and tourists. Adriana Ricardo Díaz is the director of Arte Corte, a nonprofit community project in Old Havana that trains hairdressers. “During the years before the pandemic, the private sector took off, especially in the rental housing market,” she said. “Improvement didn’t look like the gentrification that you usually see in other countries, with its devastating impact. … People sold their houses that were in bad conditions, and there was a recuperation of wealth.”  

Cubans began to take advantage of Airbnb’s experiences feature as well. Ricardo Díaz offered experiences centered around cocktail making and would show tourists around Arte Corte.  Manuel Fortún Manzano, a 29-year-old from Havana, was working in human resources for a government-run construction company when his friend told him about Airbnb in 2018. He began offering an experience called “The Havana Whisperer,” where he would teach tourists about everything from how to change money to what neighborhoods to visit (accompanied by cocktails and food, of course). It quickly became his main source of income. “More than anything, it provided me with economic autonomy,” he told Rest of World.   

David Ferrán had been working as a tour guide in Havana when Airbnb came to the country. Before, people struggled to promote their tours and find clients. “What Airbnb did was allow a lot of people working as tour guides for the state to start working independently,” he told Rest of World. Ferrán began to create different experiences for the platform, going so far as to open a family-run spa business, which he now operates outside of Airbnb.  Havana is still the main hub for tourists in Cuba, but parts of the country that had never seen tourism changed as well. According to several hosts and Pérez, the American University economist who spoke with Rest of World, Airbnb was able to open different regions to private home rentals in a way that casas particulares never could.

Manuel Fortún Manzano launched his Airbnb tourism experience in 2018 and it quickly became his main source of income. https://www.airbnb.es/experiences/156319  

Nadal Antelmo Vizcaíno is originally from Santa Marta, a small town bordering the popular tourist destination of Varadero Beach, about two hours east of Havana. He moved to Miami in 2016 but decided to list his house on Airbnb in 2017, after he saw its burgeoning footprint on the island.  At first, his town was slow to adapt to the platform. “There weren’t more than five or 10 houses [on Airbnb],” Antelmo told Rest of World. But as he went back each year, he began to see how much the town was changing. New restaurants and cafés opened. There was a construction boom to satisfy demand for more houses. “Airbnb completely revolutionized Santa Marta,” he said. 

Evelio Jesús Medero Vázquez was a taxi driver in the Varadero area between 2015 and 2018, driving the type of classic car that has become synonymous with Cuba — in his case, a 1956 Porsche. He began to do more trips back and forth from Havana, shuttling tourists, mostly staying at Airbnbs, to the beach town. “It created a constant flow of clients who wanted to learn more about Cuba,” he said.  Like Antelmo, he saw how quickly the towns around Varadero changed. Upscale new restaurants popped up, and people who owned classic cars like himself were servicing thousands of tourists a day. “Places that used to be dumps or abandoned were becoming … clean and beautiful places,” he told Rest of World. “Airbnb was an unprecedented driving force.” 

“There were definitely bumps in the road,” said Popper, the tourism consultant. Internet access was one. Some casa particular owners, long used to operating through word-of-mouth, were unable to adapt to the new technology. Rodolfo Rodríguez Trejo has been renting his property in the Vedado neighborhood in Havana for over 20 years. When Airbnb opened in Cuba, he tried to sign up for the platform, but his internet access was spotty, and he wasn’t able to create an account.  "Places that used to be dumps or abandoned were becoming…clean and beautiful places. Airbnb was an unprecedented driving force."   

Another pain point for Cuban hosts was payment. People with dual citizenship or operating from other countries, like Antelmo, could accept payments through non-Cuban bank accounts. However, Cubans still in the country and with no other nationalities were faced with payment issues on the platform. 

On a plane to Miami in 2018, Rodríguez Trejo met an Airbnb host who told him that he was going to the company’s headquarters to ask them for overdue payments. After hearing this testimony, Rodríguez Trejo felt good about his decision to not use the platform. “In Cuba, it’s a struggle to buy things like butter, cheese, and eggs,” he told Rest of World. “It takes a lot of time and effort to then have to also deal with delayed payments for months.”  As Airbnb took over the casa particular model, two years after its launch in Cuba, the platform was handed an advantage over its remaining main competitor: hotels.  

New rules under the Trump administration restricted where U.S. citizens could stay, forcing Marriott to cease operations on the island. Instead, after Airbnb reportedly spent a quarter million dollars in lobbying efforts, the U.S. government encouraged visitors to Cuba to stay at private homes.  Alessandro Benedetti, the executive assistant manager at Gran Hotel Manzana Kempinski in Havana, one of the premiere hotels in Cuba, said that, normally, Airbnb would not be a direct competitor with the luxury hotel market. That was not the case in Cuba, where Americans made up the biggest percentage of guests before the pandemic.  “For this particular market, I would say that for hotels, Airbnb is the competition,” he told Rest of World. “Many tourists want to come to Cuba but are concerned with the regulation, so they go the safer way.” 

While the Trump administration’s more restrictive policies began to diminish the flow of tourism to Cuba, the pandemic nearly shut it off. Except for a brief period in the summer of 2020, Cuba’s borders were closed to international travelers for nearly all of 2020 and 2021, finally reopening in 2021. Hotels were closed, and Airbnb occupancy dropped precipitously.  

Now, with tourism on the rebound, it’s unclear to tourism experts whether Airbnb is better positioned than hotels. Properties like the Kempinski resorts continue to open in Cuba, offering the types of luxury experiences that were unavailable on the island before the pandemic.  García is hopeful that Airbnb business will rebound with the easing of the pandemic. She’s even helping her nephew restore an antique house in the town of Trinidad in central Cuba, about four hours east of Havana. Her vision is that once it opens, they can bring guests on a tour between the two houses.  “Even though people don’t have hope in Cuba, I think there is a lot of future in this country,” she said. 

The Hill
Washington DC
11 November 2017

Airbnb’s Cuba lobbying blitz pays off
By Melanie Zanona

Airbnb launched an ambitious lobbying blitz this summer to claw back some of President Trump’s planned new restrictions on Cuban travel — and the effort appears to have paid off. 

The popular travel-booking site, which considers Cuba its fastest-growing market, successfully secured language in Trump’s regulations issued this week that will allow Americans to stay in private homes, which are often listed on Airbnb, if they visit the island to support the Cuban people.{mosads}The victory for Airbnb underscores the White House’s struggle to balance its promised crackdown on Cuba with the interests of U.S. businesses, which have overwhelmingly supported former President Obama’s historic opening with the island nation.  

“Airbnb was founded on the belief that travel helps to break down barriers between people and countries and contributes to a greater understanding of the world,” Airbnb said in a statement to The Hill.  “We appreciate that hosts will continue to have the chance to share their space and that guests can continue to visit the island. Hosts in Cuba have welcomed guests from around the world and these regulations will allow Airbnb to keep supporting individual Cuban people who share their homes.”  The White House unveiled the details of its new Cuba policy on Wednesday, nearly five months after the president directed agencies to craft new rules tightening travel and commercial ties to Cuba. The effort was aimed at fulfilling Trump’s campaign promise to reverse Obama’s thaw with the communist-run country. 

But internally, the Trump administration wrestled with how far to go in cracking down on the communist regime, according to two sources familiar with the discussions. Trump ended up leaving the core of Obama’s Cuba policies intact.  The new rules that did come down, and which took effect Thursday, restrict Americans’ ability to travel to Cuba and prevent business deals with certain entities controlled by the Cuban government and military.  

The government will no longer allow individual “people-to-people” trips for educational purposes, meaning visitors must travel to Cuba with a licensed tour group instead of going on their own.  But there is an exception that helps companies like Airbnb. 

Obama had allowed Americans to travel to Cuba for 12 different reasons, though tourism was still strictly prohibited. The individual “people-to-people” category became one of the more popular ways to see Cuba and has been credited with bringing a flood of American visitors to the island.  More than 346,000 American citizens visited the island during the first six months of 2017 — a 149 percent increase from the same time last year. Commercial flights between the U.S. and Cuba resumed last August, while Obama restored diplomatic ties with Cuba in 2015.  A wide range of Cuban and U.S. businesses have been racing to cash in on the travel surge, with Airbnb becoming one of the major beneficiaries of Obama’s relaxed travel rules.  

Private bed-and-breakfasts, or “casa particulares”, have long been a common way to stay in Cuba. Since Airbnb started operating on the island in the spring of 2015, at least 22,000 rooms have been listed on the travel-booking site and $40 million was paid to Cuban individuals who shared their home. About 35 percent of Cuba’s Airbnb guests are American, the San Francisco-based startup added. 

But Trump’s June announcement that he would be restricting travel to Cuba sent shivers through the travel and tourism industry.  Their top concern was about the shift from individual to group travel – a model that is far more difficult for bed-and-breakfasts and other small businesses to accommodate.  So Airbnb went to work, setting up a new in-house team to lobby on the issue and spending a quarter of a million dollars over six months. Previously, Airbnb had only hired outside firms to lobby on its behalf, but it began to expand its footprint in Washington around the same time it started lobbying on Cuba for the first time ever.  Meagan McCanna, who was brought on to lead Airbnb’s federal affairs last December, became a registered lobbyist for the company starting in May. 

Between April and June, when Trump first announced the Cuba changes, Airbnb spent $160,000 to lobby on issues including “general discussions regarding the Executive Order related to Cuba.”

And from July to September, when the National Security Council and other relevant agencies were in the process of actually drafting language to carry out Trump’s order, Airbnb spent $90,000 to lobby the council on Cuba, among other things.  The company’s strategy was to educate policymakers about how the platform works and highlight how the sharing economy has benefited the Cuban people. 

When the rules finally came out this week, they ended up including a provision that allows travelers to stay in private bed-and-breakfasts, like those listed on Airbnb, if they are visiting the island under the “Support for the Cuban People” travel category.  A summary sheet of the new regulations says that “renting a room in a private Cuban residence (casa particular), eating at privately owned Cuban restaurants (paladares), and shopping at privately owned stores run by self-employed Cubans (cuentapropistas)” can now count towards supporting the Cuban people.  However, a traveler must engage in additional Support for the Cuban People activities — such as humanitarian purposes and human rights assistance — in order to meet the requirements of a full-time schedule.  Still, the language was welcome news for Airbnb and the private bed-and-breakfasts that use the travel-booking site  and even Cuba hard-liners in Congress said it was something they could swallow.  “I don’t have a problem with that,” Rep. Mario Diaz-Balart (R-Fla.) told The Hill.

Libertad Lawsuits Against Four Cruise Lines: Court Questioning Certified Claimant Legitimacy- Constitutional Issues With 1960 Claims Valuation Process? Experts In; Experts Out.

HAVANA DOCKS CORPORATION VS. CARNIVAL CORPORATION D/B/A/ CARNIVAL CRUISE LINES [1:19-cv-21724; Southern Florida District]
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Jones Walker (defendant)
Boies Schiller Flexner LLP (defendant)
Akerman (defendant)

HAVANA DOCKS CORPORATION V. MSC CRUISES SA CO, AND MSC CRUISES (USA) INC. [1:19-cv-23588; Southern Florida District]
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Venable (defendant)

HAVANA DOCKS CORPORATION V. NORWEGIAN CRUISE LINE HOLDINGS, LTD. [1:19-cv-23591; Southern Florida District]
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Hogan Lovells US LLP (defendant)

HAVANA DOCKS CORPORATION VS. ROYAL CARIBBEAN CRUISES, LTD. [1:19-cv-23590; Southern Florida District]
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Holland & Knight (defendant)

Links

Reply In Support Of Defendants’ Expedited Motion To Remove Cases From Trial Calendar And Continue Remaining Pretrial Deadlines (4/5/22)
Order Amending Scheduling Order And Certain Pretrial Deadlines (4/5/22)
Order Unsealing The Summary Judgment Record (4/4/22)
Plaintiff Havana Docks Corporation’s Response To Defendants’ Expedited Motion To Remove Cases From Trial Calendar And Continue Remaining Pretrial Deadlines (4/4/22)
Joint Notice Of Filing Proposed Order On Unsealing The Summary Judgment Record (4/1/22)
45-Page Omnibus Report And Recommendation Regarding Daubert Motions (4/1/22)
Defendants’ Expedited Motion To Remove Cases From Trial Calendar And Continue Remaining Pretrial Deadlines (3/31/22)
Libertad Act Lawsuit Filing Statistics

Excerpts 

THIS CAUSE is set for trial during the Court’s two-week trial calendar beginning on August 1, 2022, at 9:00 a.m. Courtroom 10-2 at the Wilkie D. Ferguson, Jr. United States Courthouse, 400 North Miami Avenue, Miami, Florida 33128.  

On April 1, 2022, Magistrate Judge McAliley issued a report recommending that all of Havana Docks’ experts be excluded, including its damages experts. (the “Report,” Carnival Case, D.E. 485.) The Report also recommends excluding two (out of three) opinions rendered by the Defendants’ damages expert.2 The current deadline to object to the Report is April 15, 2022. Id. at 45. 3. Havana Docks intends to file an objection to the Report and, due to the complexity and importance of the issues involved, will be seeking a two-week enlargement of its deadline to do so. Further, in its objection, Havana Docks intends to request a Daubert hearing, which would permit the Court to explore Havana Docks’ experts’ methodology and approach to valuation. 

Havana Docks intends to file an objection to the Report and, due to the complexity and importance of the issues involved, will be seeking a two-week enlargement of its deadline to do so. Further, in its objection, Havana Docks intends to request a Daubert hearing, which would permit the Court to explore Havana Docks’ experts’ methodology and approach to valuation.  Considering that the fair market value of Havana Docks’ confiscated property is the only issue remaining for trial, and that the Report recommends that all but one valuation witness be precluded from testifying on that issue, Havana Docks agrees with the Defendants that trial preparation and presentation will be meaningfully informed by the Court’s resolution of the Daubert motions. (Mot. at 4.) Thus, Havana Docks joins the Defendants in requesting an enlargement of the remaining pretrial deadlines and the present trial setting.

Plaintiff has shown, however, that Spiller’s second opinion is not relevant. His $1.5 million value of the Confiscated Property in 1960 is less than the $9.2 million that the Commission certified; it is also less than his current fair market valuation of $46 million. The Act’s damages provision plainly states that the greater figure isthe amount of damages. It also provides that the Commission’s $9.2 million finding is presumed to be the amount of Defendants’ liability. 22 U.S.C. § 6082 (a)(1)(A), (a)(2). As the lesser and disfavored number, Spiller’s 1960 fair market value is irrelevant. Defendants may attempt to argue that Spiller’s $1.5 million 1960 value is the more “appropriate amount of liability” and if that is the case, the Court may wish to consider his opinion in that context. I otherwise recommend that the Court grant Plaintiff’s Daubert Motion and Exclude Spiller’s second opinion. 

For the reasons expressed above, I respectfully recommend that the Court GRANT Defendants’ Omnibus Motion to Exclude Testimony of Plaintiff’s Experts (ECF No. 320), and exclude from evidence the testimony of John Hentschel, Franc Pigna, Michael Deiters, James Patton, Michael Garlich and José Azel. I further recommend that the Court GRANT Plaintiff’s Motion to Exclude Opinion of Pablo Spiller (ECF No. 328).

Turkey's Karpowership Delivering Fifth Electric Generation Vessel; More Than 15% Of Cuba's Current Electricity Usage. Company Won't Comment. Contracts Profitable.

Along with the recently-announced increase in frequency of Turkish Airlines weekly flights from Turkey to the Republic of Cuba:

The most recent statement from Istanbul, Turkey-based Karadeniz Holding AS: “In October 2018, Karpowership signed a contract with Unión Eléctrica de Cuba (UNE), the state electricity company of Cuba, to deploy three Powerships of 110 MW in total for a period of 51 months. Karadeniz Powership Barış Bey and Karadeniz Powership Esra Sultan started operation in Port de Mariel in July 2019 and Karadeniz Powership Ela Sultan started operations in November 2019. In November 2019, the contract capacity was increased to 184 MW. Cuba is Karpowership’s first project in Western Hemisphere. Karpowership will supply 10% of Cuba’s total electricity needs.”   

NOTE: Karpowership has neither updated its Internet site to reflect a fourth vessel under contract to the Republic of Cuba nor to reflect a fifth vessel under contract to the Republic of Cuba.

NOTE: Karpowership vessels for use in the Republic of Cuba rely on high sulfur heavy crude oil (HSFO 3.5%S) or diesel fuel produced in or imported by the Republic of Cuba. 

Cuba to add new floating power plant to its electro-energy system 

Havana, Apr 3 (Prensa Latina) Cuba is moving forward today in the search for alternatives to reinforce electricity generation by adding a new floating power plant, which will arrive in the country in the coming weeks.  

By Ana Luisa Brown  

As reported on his Twitter account by the Minister of Energy and Mines, Livan Arronte Cruz, the Caribbean island finalized an agreement with the Turkish company Karen for the delivery of another floating power plant that will contribute with 15 megawatts (MW) to the national electro-energy system.  

This unit will complement the four existing ones, located in Havana Bay and near the Maximo Gomez Baez of Mariel Thermoelectric Power Plant, in Artemisa, as part of the Turkish company’s first project in Latin America.  The vessels with energy technology allow maintenance of other thermoelectric power plants, contribute to increase the national reserve and substitute the use of diesel, one of the most expensive fuels in generation.  

The news came on the same day that the Electric Union reported some service interruptions, due to the breakdowns of unit No. 1 at Felton and a unit at Nuevitas.  The interruptions will be programmed by the respective territories, in order to reduce the inconvenience to the population, according to a note published on the Ministry of Energy and Mines website.  In addition, work is being carried out on the maintenance of four thermoelectric power plants to guarantee the stability of this service during the summer, as well as on the reestablishment of two units in the Mariel CTE.  

Cuba sumará nueva central flotante a su sistema electroenergético 

La Habana, 3 abr (Prensa Latina) Cuba avanza hoy en la búsqueda de alternativas para reforzar capacidades de generación de electricidad con la suma de una nueva central flotante, que llegará al país en las próximas semanas.  

Según informó en su cuenta de Twitter el ministro de Energía y Minas, Liván Arronte Cruz, la Isla caribeña concretó un acuerdo con la compañía turca Karen para el envío de otra central flotante que aportará 15 megawatts (MW) al sistema electroenergético nacional.  Esa unidad complementará a las cuatro ya existentes, ubicadas en la Bahía de La Habana y en las proximidades de la Central Termoeléctrica Máximo Gómez Báez de Mariel, en Artemisa, como parte del primer proyecto de la compañía turca en América Latina.  Las embarcaciones con tecnología energética permiten dar mantenimiento a otras centrales termoeléctricas, contribuyen a incrementar la reserva nacional y sustituyen el uso de diésel, uno de los combustibles más caros en la generación. 

La noticia llegó el mismo día que la Unión Eléctrica informó algunas afectaciones al servicio, producto de la salida por averías de la unidad número No. 1 de Felton y una unidad de Nuevitas. Las interrupciones se programarán por los respectivos territorios, a los efectos de disminuir las molestias a la población, señaló una nota publicada en la web del Ministerio de Energía y Minas.  Además, se trabaja en el mantenimiento de cuatro centrales termoeléctricas para garantizar la estabilidad de este servicio en el verano, así como en el restablecimiento de dos unidades en la CTE del Mariel. 

LINKS To Related Analyses 

Turkey's Karpowership Adds Fourth Thermal Power Barge In Cuba. Company Generating More Than 10% Of Cuba's Electricity. Good For Turkish Companies. Reinforces Cuba's Energy Production Issues. November 25, 2021 

Karpowership From Turkey Extends And Expands Floating Electricity Generation In Cuba; Joining Turkey's Global Ports Holding Which Manages Cruise Ship Terminal In Havana. November 19, 2021 

Turkey's Karadeniz Holding May Add To “Karpowership” Fleet In Cuba. December 02, 2020 

Karadeniz Holding Of Turkey Update On "Karpowership" Operations In Cuba. March 09, 2020 

Karadeniz Of Turkey Delivering Floating Power Plant To Cuba For 51-Month Contract. April 23, 2019 

Turkey's Karadeniz Holding Reports Electricity Contract With Cuba In October 2018; But, No Contract Signed Five Months Later. April 01, 2019 

Karpowership Background 

“Karpowership is a member of Karadeniz Energy Group, Istanbul, Turkey. The group is a pioneer in innovative energy projects for the last 20 years, with investments in domestic and international markets. The group started its energy investments in 1996, and is the first private electricity exporter in Turkey. Today, the group owns and operates more than 4,350 MW installed capacity globally. 

Karpowership is the only owner, operator and builder of the first Powership (floating power plant) fleet in the world. Since 2010, 25 Powerships have been completed with total installed capacity exceeding 4,100 MW. Additional 4,400 MW of Powerships are either under construction or in the pipeline. 

Starting from the design, and ending with delivery of electricity, Karpowership fully executes all activities in-house including but not limited to construction, site preparation, commissioning, and fuel supply. Utilizing the highest technology, Karpowership provides fast-track delivery, high efficiency, and all integrated “plug&play” project execution. Via these capabilities, Karpowership is able to successfully undertake a variety of commercial structures such as short term IPPs (Independent Power Producer), long-term IPPs, PPAs (power purchase agreements), and rental contracts with its Powership fleet. 

Powerships supplied and have been supplying 60% of Gambia, 26% of Ghana, 100% of Guinea Bissau, 10% of Guinea, 25% of Lebanon, 10% of Mozambique, 15% of Senegal, 80% of Sierra Leone, 10% of Sudan, 10% of Cuba, 30% of North Sulawesi, Indonesia, 55% of East Nusa Teneggara, Indonesia, 80% of Ambon, Indonesia, 10% of Medan, Indonesia, and 16% of Zambia’s and 30% of Southern Iraq’s total electricity generation. 

As of today, Karpowership has more than 2,600 direct employees from 19 different nationalities, creates employment for additional 10,000 co-workers for the construction of the Powerships and is expanding through renewables, Powerships and other innovative energy supply solutions.”

UK Closes Trade Office In Havana, Citing Budget Cuts. First Major Challenge For New UK Ambassador To Cuba- Doing The Same Or More... With Less.

“Department for International Trade (DIT) Cuba provides trade and investment services and practical support. We help UK companies succeed in Cuba, and Cuban companies set up and invest in the UK.  We offer expertise and contacts through our extensive network of specialists in the UK, and staff in the British Embassy in Cuba.” 

English Text: “Dear colleagues, We are writing to inform you about that we are making here at the embassy; after much consideration (and with much regret), it has been decided to close the DIT office in Cuba.  The office will formally closed on 31st March 2022.  

This is not a decision that we came to lightly but, given budget challenges across the UK government, having a dedicated resource in Cuba could no longer be justified. This is a change that reflects decisions made in other similarly challenging posts in region such as Venezuela.  We will continue to support opportunities that arise in Cuba through two new support models, first through our Central American Team based in Panama: ariel.perez@fcdo.gov.uk and second through our Enquiry Hub based across the region which will handle enquiries from UK companies about the market dit.latac@mobile.trade.gov.uk and lucia.rojas@fcdo.gov.uk and pamela.esquivel@fco.gov.uk  

While it is important to bear in mind that the Embassy will not have the capacity of offering the same services as in the past, Lizzie Pinder  (lizzie.pinder@fcdo.gov.uk), 2nd Secretary Economics, will take calls on trade issues if the need arises.  We should also say that if circumstances change and significant opportunities for UK business in Cuba arise in the future, this decision will be reconsidered. We would like to reassure you that this does not change the UK Government’s commitment to Cuba and that our wider diplomatic presence in Havana remains unchanged.  Both the Embassy and our regional teams remain ready to continue to grow and develop the UK-Cuba relationship. British Embassy in Havana and DIT Latin America and The Caribbean (LATAC)”   

Spanish Text: “Estimados colegas, Les escribimos para informarles de algunos cambios que el Departamento de Comercio Internacional (DIT) del Gobierno del Reino Unido está realizando en Cuba.  Después de mucha consideración y análisis, hemos tomado la decisión de retirar nuestro pequeño equipo de DIT en Cuba. Esta no es una decisión a la que llegamos a la ligera, sin embargo, dada la necesidad de priorizar nuestros recursos, actualmente no vemos la necesidad de tener recursos dedicados en Cuba.  La oficina cerro formalmente el 31 de marzo de 2022. Seguiremos apoyando las oportunidades que surjan en Cuba a través de dos nuevos modelos de apoyo. En primer lugar, nuestro equipo de América Central, con sede en Panamá: ariel.perez@fcdo.gov.uk del que formaba parte nuestro equipo de Cuba, y en segundo lugar, nuestro Centro para consultas con sede en toda la región, que atenderá las consultas de las empresas británicas sobre el mercado dit.latac@mobile.trade.gov.uk y lucia.rojas@fcdo.gov.uk y pamela.esquivel@fco.gov.uk 

Dado que no podremos seguir operando como de costumbre para aquellos casos que requieran el apoyo de la Embajada, les rogamos que se pongan en contacto con Lizzie Pinder, la Segunda Secretaria de Economía, en la Embajada Británica en La Habana (lizzie.pinder@fcdo.gov.uk). Sin embargo, es importante tener en cuenta que la Embajada no tendrá la capacidad de ofrecer los mismos servicios que en el pasado. Ya que nuestro personal en La Habana nos dejará el 31 de marzo de 2022. Si en el futuro surgen oportunidades significativas para los negocios del Reino Unido, que requieran una presencia sobre el terreno, más allá de estas nuevas estructuras, entonces reconsideraríamos con gusto esta decisión.  

Me gustaría asegurarles que esto no cambia el compromiso más amplio del Gobierno del Reino Unido con Cuba, y nuestra presencia diplomática en La Habana permanece sin cambios.  Tanto la Embajada como nuestros equipos regionales siguen dispuestos a seguir creciendo y desarrollando la relación entre el Reino Unido y Cuba. Embajada Britanica en la Habana y Equipo de DIT de Latinoamerica y el Caribe,  (LATAC)” 

LINK To Related Analysis 

London Delivers High Wattage Political Appointee As UK Ambassador To Cuba. Since 1931, Only Third “Sir” To Serve. Issues: UK-Connected Libertad Act Lawsuit & China-Connected Bank Lawsuits.  January 31, 2022

Another Biden-Harris Administration Missed Opportunity: U.S. Investors & Financial Companies Should Have Been Permitted To Sponsor, Participate In Cuba's First Trade Show For Private Companies.

NOTE: The United States Department of State has not responded to a question- Did a representative of the United States Embassy in Havana visit the Havana Local Development Fair?

15 April 2022 From A State Department Spokesperson: “The Administration encourages the growth of a Cuban private sector independent of government control.  The U.S. Embassy in Havana regularly meets with members of the Cuban semi-private sector and hosts topical discussions related to business development and economic growth.  The Department also supports private sector development and entrepreneurship training through the Young Leaders of America’s Initiative, the Academy for Women Entrepreneurs, and other Embassy exchange programs.” While an informative statement, the statement did not answer the question. 

After three years of pursuing a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington DC, in 2002, Westport, Connecticut-based PWN Exhibicon International LLC welcomed more than 900 representatives of United States-based companies to the U.S. Food & Agribusiness Exhibition held at the Palacio de Convenciones de la Habana (Pabexpo) in the city of Havana, Republic of Cuba, from 26 September 2002 through 30 September 2002. The primary sponsor of the event was Chicago, Illinois-based Archer Daniels Midland Company, known as ADM. LINK To Final Report

From 28 March 2022 to 3 April 2022 at the same location as the U.S. Food & Agribusiness Exhibition, seven hundred and twenty (720) privately-owned companies participated in the first-ever government of the Republic of Cuba officially-sanctioned event designed solely to promote privately-owned companies. There are approximately 2,523 privately-owned companies registered in the Republic of Cuba- 28% participated in the Havana Local Development Fair at the ExpoCuba fairground.

These participants included the self-employed, and micro, small and medium-size enterprises (MSME), the largest of which may have up to one hundred (100) employees.

Another missed opportunity for the Biden-Harris Administration (2021- ) for the OFAC to have authorized United States-based investors and United States-based finance providers not only attend, but to have sponsored the event and for investors and finance providers to engage directly with participants and execute investment agreements and finance agreements.

Despite numerous requests, the OFAC has yet to authorize individuals (and incorporated entities) subject to United States jurisdiction to directly invest in and directly provide financing to the self-employed and to MSMEs in the Republic of Cuba.

For reference, the 291 United States-based exhibitors participating in the 2002 U.S. Food & Agribusiness Exhibition signed contracts for US$91,970,990.00. To date, the Republic of Cuba has purchased more than US$6,622,784,996.00 in agricultural commodities and food products from United States-based producers. 

Associated Press
New York, New York
2 April 2022

Cuba’s new private companies show off products at trade fair

By ANDREA RODRÍGUEZ

A vintage Russian-made Lada car, right, and an American-made classic car drive past the Capitol in Havana, Cuba, Friday, April 1, 2022. Global restrictions on transport and trade with Russia after its invasion of Ukraine pose a serious problem for Cubans because much of the island's fleets of trucks, buses, cars and tractors came from distant Russia and are now aging and in need of parts. (AP Photo/Ramon Espinosa) 

HAVANA (AP) — The event at a convention center in Cuba’s capital looks like a lot of trade fairs: Music blares as visitors stroll between colorful booths displaying a wild variety of products: furniture or clothing, glassware or recycled paper, chocolates or cleaning products. 

But it’s a commercial milestone for Cuba: The companies showing off their wares are largely formal, private companies that were legalized only about six months ago — more than a half century after the Communist government banned nearly all private enterprise. 

“We’re experiencing something without precedent, at least for our generation,” said César Santos, a 36-year-old engineer who is a partner in Lucendi SRL, a company that offers electrical installations both for private and state clients. “We are seeing other businesses that we didn’t even know existed.”  Santos was born 18 years after the government closed or took over private businesses in 1968, consolidating a Soviet-style socialist system that had been forged following the 1959 revolution led by Fidel Castro. 

Cuba’s single-party political system has survived the 1991 collapse of the Soviet Union, but its socialist economy has continually struggled to find its footing in the decades following the loss of heavy Soviet subsidies. It has long tried to attract foreign investors and has expanded tourism, despite U.S. embargo measures that impede both. But productivity in the state-run sector has remained dismal. 

Fidel Castro’s government reluctantly began allowing small-scale individual private businesses in the early 1990s, then cracked down amid complaints they were creating a class of relatively rich people under a system that prizes equality over wealth. With the inefficient economy still struggling, the government led by his brother and heir Raul once again opened the door to individual businesses in 2010. On the eve of the pandemic, some 600,000 people were working in that sector on the island of 11.3 million people. 

They run little restaurants, rent out rooms, offer repair services, even at least one chic clothing boutique — though they supposedly can employ only family members or a handful of outsiders.  But the new policy that took effect in September — while the economy was slammed by shortages, pandemic restrictions and a tightened U.S. embargo — potentially goes far beyond: It allows actual companies that can employ up to 100 people, can get formal financing and do business with state enterprises. 

Within six months, 2,614 new “limited responsibility societies” — or SRLs in Spanish — have registered. And 2,523 of those are private companies, with the rest either state or cooperative enterprises. Most are in the Havana area.  So far, they employ about 42,000 people. 

Restrictions remain, however. The government says the state will remain the dominant force in the economy and the new companies can’t do journalism or offer key professional services such as architecture, medicine or law. And the business people at the fair said they still face bureaucratic hurdles that need to be smoothed if the system is to work better: For example, banking, import and export red tape is complicated, they said. 

The fair closing Sunday at the Expocuba center on the southern fringe of Havana features 720 companies and cooperatives showing off everything from yoghurt to construction materials. Officials hoped the gathering in part would help entrepreneurs make business contacts among themselves, said Suleidis Álvarez, an official with the capital’s Plaza of the Revolution municipality. For example, she said, a woodworking company had found a producer of nails it needed. 

The youth of the participants was notable on an island that has suffered the loss of many young people through emigration.  “The migratory crisis we’re experiencing currently is really sad,” Santos said. “Nevertheless, we are seeing opportunities arising through this private enterprise (policy). ... I prefer to bet on building my business in the country where I am.” 

LINKS To Self-Employed, Micro, Small & Medium-Size Enterprise (MSME) Analyses   

MSME's In Cuba Continue To Be Created, Continue To Expand While Biden-Harris Administration Ignores Opportunities For U.S.-Sourced Investment And Financing... 414 Days  March 19, 2022 

Surprise Decision: Biden-Harris Administration Renews Trump-Pence Administration License To Export EVs To Embassies In Cuba. Company Offers To Donate EV Chargers To U.S. Embassy/Ambassador Residence  January 25, 2022  

Cuba Updates Status Of Micro, Small & Medium-Sized Enterprises  January 19, 2022  

Why Is National Security Council (NSC) In The White House Refusing To Permit U.S.-Based Investors/Financiers To Directly Support Women-Owned (Or Men-Owned) Businesses In Cuba? State Dept. Complicit?  January 06, 2022  

Embassy Of Italy: V International Workshop of Women Entrepreneurs In Cuba: "The Talent Of Women. Art, Crafts & Design"  January 06, 2022  

President Biden Rejects BIS License Application To Export Electric Vehicles/Chargers To Cuba's Self-Employed, MSME's. Reversal Of "General Policy Of Approval." President Trump Authorized EV Exports.  December 20, 2021  

Cuba Again Expanding MSME Authorizations To Include Accessing Foreign Capital, Foreign Bank Accounts, Local Development Projects Qualify.  December 02, 2021  

Why Won't Biden Administration Permit U.S. Entities To Invest/Finance MSMEs? In December, Cuba’s FIMELSA Begins Convertible Currency-Equivalent Loans At 6.5% For 120 Days; Lower For CUP.  November 25, 2021  

Update: More Than 700 Micro, Small And Medium-Sized Enterprises Approved In Cuba  November 25, 2021  

OFAC & BIS To 107 Tech Companies? Cuba. Yes, You Can Go There, But We Dare You. "Encourage & Enable" Not The Same As "Access & Use." Memo: Donilon, Klain, Ricchetti, Richmond, Sullivan.  November 23, 2021  

Will President Biden's Statement That His Is "a small business presidency” Extend To Supporting Small Businesses In Cuba?  November 22, 2021  

Update On Registration Of Micro, Small & Medium-Size Enterprises In Cuba. Now More Than 600.  November 21, 2021  

Cuba Continues To Report On Activity Of MSME's- The Numbers Increase.  November 06, 2021 

Joint Venture Between Banco de Sabadell Of Spain And Banco International de Comercio In Cuba Will Provide Financing In Foreign Currency To MSMEs & Non-Agricultural Cooperatives  November 05, 2021  

Beginning Today Residents Of Cuba May Purchase And Install Residential Solar Systems. Cost 55,000.00 Pesos (US$2,300.00). Call 7833-3333.  November 04, 2021   

Bormey srl Among The First 35 Newly-Constituted Medium-Sized Enterprises In Cuba, Exported 5,000 Peanut Bars To Italy. Is United States Next? U.S. Department Of State Regulations Would Approve.  October 26, 2021  

Cuba Approves First 35 MIPYME Applications- Confirms No Application Thus Far Denied. Many More Applications Expected. Result Beneficial For Biden Administration Goal To Support SME's.  September 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.  July 30, 2021  

ProLimp Cleaning In Cuba Precisely Type Of Entrepreneurship Biden Administration Should Support. Will Cuba Permit U.S. Venture Capitalists?  March 08, 2021  

Cuba To Unify Currencies; Result Could Present Opportunities For Biden Administration And U.S. Companies  December 11, 2020  

Florida Company Receives License To Export Electric Vehicles To Cuba; Charging Stations From New Jersey-Based Company.  January 25, 2017  

Restriction On Sale Of Premium Gasoline May Benefit Electric Vehicles & Solar Panels; Embassies Concerned.  April 07, 2017

Law Firms Connected To Plaintiffs/Defendants In Libertad Act Lawsuits Facing Off In Lawsuit Against PAHO For Cuban Doctor Payments In Brazil

Ramona Matos Rodriguez, Tatiana Carballo Gomez, Fidel Cruz Rodrigue, and Russela Margarita Rivero Sarabia, plaintiffs, v. Pan American Health Organization, defendant. [1:20-cv-00928, Southern District Court- Miami Division].

Cooper & Kirk, PLLC (plaintiff)
Cuneo Gilbert & LaDuca, LLP (plaintiff)
Dubbin & Kravetz (plaintiff)
Wilmer Cutler Pickering Hale & Dorr LLP (defendant)

Judgement- 1 Page (3/29/22)
Opinion- 24 Pages (3/29/22)
Transcript Of Status Conference United States District Judge- 17 Pages (1/28/22)
Class Action Complaint- 85 Pages (11/30/2018)

Excerpt From Judgement
This cause came on to be heard on the record on appeal from the United States District Court for the District of Columbia and was argued by counsel. On consideration thereof, it is ORDERED and ADJUDGED that the District Court’s judgment denying PAHO’s motion to dismiss the 18 U.S.C. § 1589(b) claim be affirmed and the case be remanded for further proceedings, in accordance with the opinion of the court filed herein this date.

Excerpt From Opinion
Finally, we note that the United States has submitted an amicus brief affirming that, in its view, WHO Constitution Article 67(a) is not self-executing. “Respect is ordinarily due the reasonable views of the Executive Branch concerning the meaning of an international treaty.” El Al Israel Airlines, Ltd. v. Tsui Yuan Tseng, 525 U.S. 155, 168 (1999). The Executive Branch’s position reinforces our decision.

LINK: Libertad Act Lawsuit Filing Statistics

LUIS MANUEL RODRIGUEZ, MARIA TERESA RODRIGUEZ, a/k/a MARIA TERESA LANDA, ALFREDO RAMON FORNS, RAMON ALBERTO RODRIGUEZ, RAUL LORENZO RODRIGUEZ, CHRISTINA CONROY, and FRANCISCO RAMON RODRIGUEZ, Plaintiffs, v. IMPERIAL BRANDS PLC, CORPORACIÓN HABANOS, S.A., WPP PLC, YOUNG & RUBICAM LLC, and BCW LLC, a/k/a BURSON COHN & WOLFE LLC [1:20-cv-23287; Southern Florida District].

Berenthal & Associates (plaintiff)
Rodriguez Tramont & Nunez (plaintiff)
Nelson Mullins (defendant)
Allen & Overy (defendant)
Wilmer Cutler Pickering Hale and Dorr (defendant)
Broad & Cassel (defendant)
Akerman (defendant)
Trenam, Kemker, Scharf, Barkin, Frye, O’Neill & Mullis (defendant)
Rabinowitz, Boudin, Standard, Krinsky & Lieberman (defendant)
Strook & Strook & Lavan (defendant)

ROBERT M. GLEN VS. TRIPADVISOR LLC, TRIPADVISOR, INC., ORBITZ, LLC, TRIP NETWORK, INC. D/B/A CHEAPTICKETS, KAYAK SOFTWARE CORPORATION, BOOKING HOLDINGS, INC., EXPEDIA, INC., EXPEDIA GROUP, INC., HOTELS.COM, L.P., HOTELS.COM GP, LLC, and TRAVELSCAPE LLC D/B/A TRAVELOCITY [2:19-cv-01683; Nevada District] On 16 December 2019, plaintiff requested dismissal without prejudice, which was granted; action consolidated with 1:19-cv-01809 in Delaware District.

Rice Reuther Sullivan & Carroll, LLC (plaintiff)
Reid Collins & Tsai LLP (plaintiff)
Andrews & Springer LLC (plaintiff)
Walden Macht & Haran (defendant- Trip Advisor)
Potter Anderson & Corroon, LLP (defendant- Trip Advisor)
Scott Douglass McConnico (defendant- Expedia)
Morris, Nichols, Arsht & Tunnell LLP (defendant- Booking)
Dubbin & Kravetz (amicus)
Baker McKenzie (defendant- Booking)
Ballard Spahr LLP (defendant- Expedia)
Morris James LLP (defendant- Booking)
Duane Morris LLP (defendant- Booking)
Cooch and Taylor, P.A. (amicus)

Reuters Americas
London, United Kingdom
31 March 2022

(Reuters) - The Pan American Health Organization (PAHO), an international body that promotes health initiatives in the Americas, must face a lawsuit by Cuban doctors accusing it of helping arrange a program in which they were compelled to work in Brazil against their will, violating human trafficking laws.

A unanimous three-judge panel of the U.S. Circuit Court of Appeals for the D.C. Circuit ruled Tuesday that PAHO's status as an international organization did not make it immune from the lawsuit because the doctors had accused it of financial misconduct within the United States. Samuel Dubbin of Dubbin & Kravetz, a lawyer for the doctors, said in a statement that PAHO "will finally be held accountable for profiting more than $75 million off the backs of thousands of Cuban professionals."

PAHO could not immediately be reached for comment.

The case, brought by four doctors in 2018 in the Southern District of Florida and transferred in 2020 to Washington, D.C., district court, centers on the so-called Mais Medicos program, in which Cuba in 2012 agreed to send doctors to work in Brazil, which would pay for their services, using PAHO as an intermediary. The Cuban government received 85% of the money paid by Brazil, with just 10% going to the doctors and 5% retained by PAHO as a fee. The funds passed through PAHO's U.S.-based bank account.

The doctors in their lawsuit said that they had escaped from the program to the United States. They alleged they were forced to work under the threat of punishment by their government and paid far less than the value of their work. They are seeking to represent a class of similarly situated doctors in the program. The doctors said that PAHO violated the Trafficking Victims Protection Act by facilitating the program. PAHO moved to dismiss the lawsuit, citing a U.S. law that gives international organizations the same immunity from being sued as foreign governments under the Foreign Sovereign Immunities Act.

U.S. District Judge James Boasberg agreed that claims related to PAHO's activities outside the United States were barred, and dismissed them. However, he said claims could proceed based on PAHO's financial activity because the FSIA does not apply when an action "is based upon a commercial activity carried on in the United States."

On appeal, PAHO argued that the doctors' action was not "based upon" the financial transactions in the United States, but rather on foreign conduct. In Tuesday's opinion penned by U.S. Circuit Judge Karen Henderson, the D.C. Circuit said that the financial transactions, allegedly made in furtherance of trafficking, could stand on their own as a cause of action. Circuit Judges David Tatel and Cornelia Pillard joined in the opinion.

January 2022 Agricultural Commodities/Food Products Exports To Cuba Increase 14.5%.

ECONOMIC EYE ON CUBA©
March 2022

January 2022 Food/Ag Exports To Cuba Increase 14.5%- 1
57th Of 207 January 2022 U.S. Food/Ag Export Markets- 2
2022 Exports Increase 14.5%- 2
Cuba Ranked 75th Of U.S. Ag/Food Export Markets- 2
January 2022 Healthcare Product Exports US$0.00- 2
January 2022 Humanitarian Donations US$398,943.00- 3
Obama Administration Initiatives Exports Continue- 3
U.S. Port Export Data- 16

JANUARY 2022 FOOD/AG EXPORTS TO CUBA INCREASE %- Exports of food products and agricultural commodities from the United States to the Republic of Cuba in January 2022 were US$21,783,159.00 compared to US$19,018,549.00 in January 2021 and US$13,421,660.00 in January 2020.

January 2022 Exports Included: Chicken Leg Quarters (Frozen); Chicken Meat (Frozen); Chicken Legs (Frozen); While Chickens; Woodpulp; Coffee Beans; Bean Seeds for sowing.

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.

Click here for a list of agricultural commodities eligible for export to Cuba under Section 902(1) of the Trade Sanctions Reform and Export Enhancement Act of 2000

Complete Report In PDF Format

44th Libertad Act Lawsuit Filed. Plaintiffs Suing Melia Hotels In Spain Now Suing Expedia In U.S. "Expedia Group does not list hotels on the Expedia Group websites for charitable purposes."

CENTRAL SANTA LUCIA, L.C., PLAINTIFF, V. EXPEDIA GROUP, INC., DEFENDANT. (1:22-CV-00367; Delaware District) 

Cross & Simon, LLC (plaintiff)
Berliner Corcoran & Rowe LLP (plaintiff)
Fields LLC (plaintiff)
Ballard Spahr LLP (defendant)

Complaint (3/22/22)
Link To Libertad Act Lawsuit Filing Statistics

Excerpts From Complaint 

Central Santa Lucia brings this action to recover damages and interest under the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996, codified at 22 U.S.C. § 6021, et seq. (the “Helms-Burton Act” or “Act”) against Expedia for trafficking in property that was confiscated by the Cuban Government on or after January 1, 1959, and as to which Central Santa Lucia owns claims. 

The Confiscated Property includes real property located in or near Holguin province, Cuba that, until it was confiscated by the Cuban government in 1960, was owned by Santa Lucia Company, S.A., a Cuban corporation. The Confiscated Property consists of Santa Lucia Company, S.A. and approximately 102,300 acres of land, including thirty-five miles of oceanfront property that in some parts extended 8 miles inland. The following beaches (as they are currently known) are located on the Confiscated Property: Playa Blanca; Playa Pesquero; Playa Yuraguanal; Playa Esmeralda; and Playa Guardalavaca. 

A number of luxury hotels are currently located on the Confiscated Property including, but not limited to: Hotel Brisas Guardalavaca; Club Amigo Atlantico-Guardalavaca; Paradisus Rio de Oro; Sol Rio de Luna y Mares; Hotel Turquesa Holguin; Fiesta Americana Costa Verde; Hotel Playa Costa Verde; Playa Pesquero Resort Suite and Spa Hotel; Iberostar Selection Holquin; Villa Don Lino; Memories Holquin; and the Iberostar Selection Almirante. 

Under the agency model, Expedia Group facilitates travel bookings and acts as the agent in the transaction, passing reservations booked by the traveler to the relevant travel provider with Expedia Group receiving commissions or ticketing fees from the travel supplier and/or the traveler. Customers pay at the time of stay under this model, referred to as “Hotel Collect.” The agency model accounted for 24% of Expedia Group’s revenue in 2020. 

On May 23, 2017, Expedia Group announced that it had started offering online booking for hotels in Cuba. Veronica Vega, Expedia Area Manager for the Caribbean, stated that, “I see a lot of potential. We are talking about the largest country in the Caribbean with significant hotel expansion plans,” and that, “We are very excited about being able to facilitate travel and give people the independence to select their itinerary.” 1 57. Expedia Group entered into a settlement agreement with the Office of Foreign Assets Controls (“OFAC”) on May 17, 2019, regarding 2,221 potentially non-compliant Cubarelated travel transactions that occurred between 2011-2014. 

Expedia Group websites still facilitate online booking for hotels in Cuba and Expedia Group has never announced a withdrawal from the Cuban market. 62. Expedia Group websites advertise hotels on the Confiscated Property and enable the hotels, Grupo de Administración Empresarial S.A. (“GAESA”), and the Cuban government to normalize the appearance of the Cuban military’s involvement in the tourism and hotel industry in Cuba.2 63. Expedia Group websites facilitate the payment of hard currency to the Cuban government and military, including GAESA. 

Expedia Group is profiting from trafficking in the Confiscated Property by or through its retail brands that advertise, publicize, and/or facilitate the booking of rooms at hotel properties in Holguin province. 74. Expedia Group does not list hotels on the Expedia Group websites for charitable purposes. 

Links To Related Posts About Plaintiff’s Spain-Filed Lawsuit 

Lawsuit Against Spain's Melia Hotels International Takes Another Turn... Government Of Spain Never Served Cuba. Repeat. Start Again.  July 06, 2021 

In Lawsuit Filed In Spain Against Melia Hotels, Plaintiff Argues That Government Of Cuba Is Not Required To Be A Defendant; Melia Hotels Says Otherwise.  February 10, 2021 

Court In Spain Requires Government Of Cuba And Gaviota Tourism Company Be Included In "Unjust Enrichment" Lawsuit Against Melia Hotels International.  January 16, 2021 

Plaintiffs Appeal Dismissal Of Lawsuit In Spain Against Melia Hotels; Plaintiffs Sue In U.S.; Why Did Melia Hotels Offer US$5 Million Then US$3,197.75?  October 05, 2019

43rd Libertad Act Lawsuit Filed In Delaware. Previous Plaintiff Lawsuit Dismissed In Texas. New Plaintiff, Same Defendant.

SIERRA ET AL V. TRAFIGURA TRADING, LLC (1:22-cv-00366; Delaware District).

Cross Castle LLC (plaintiff)
McGuire Woods LLP (defendant)

Order (3/15/22)
Complaint (3/22/22)
Link To Libertad Act Lawsuit Filing Statistics

Excerpts From Complaint: 

Defendant is trafficking in the Confiscated Property in violation of the Act. Specifically, Defendant causes, participates in, and/or profits from the Trafigura Group’s and its Mining Group’s mining operations in Cuba, and those mining operations use the Confiscated Property. 73. According to their 2016 Annual Report, the Trafigura Group and its Mining Group entered into a joint venture with the Cuban Government to make a large investment in mining operations on the island: “The project is another illustration of Trafigura Mining Group’s ability to put its expertise and investment to work in challenging economic or political environments. Work is so far proceeding to plan, and the mine is expected to start production towards the end of 2017.” 74. The mining operation—referred to as the Castellanos lead and zinc mine—is conducted through EMINCAR, a joint venture between the Trafigura Group including its Mining Group (which owns a 49 percent interest) and Cuban state agency Geominera (which owns a 51 percent interest). With a capital outlay equivalent to $230 million, construction was completed in 18 months from start to finish. According to financial reports, the Trafigura Group and its Mining Group invested at least $230 million in the venture through a loan to EMINCAR. 

Links To Related Posts About Plaintiff 

HILDA M. CASTANEDO ESCALON, AS PERSONAL REPRESENTATIVE OF THE ESTATE OF HILDA CASTANEDO AND THE ESTATE OF EMMA DIAZ, Plaintiffs, v. TRAFIGURA TRADING, LLC, TRAFIGURA PTE LTD, TRAFIGURA GROUP PTE LTD, Defendants. (4:21-cv-00659; Texas Southern District).  Dismissed 3/15/22. 

34th Libertad Act Lawsuit Filed: Trafigura Of Singapore Sued For Using Two Ports (Including Mariel) And Other Mining Assets.  March 05, 2021

Despite Requesting Two Delays, DOJ Will File Brief To Court Of Appeals- Will DOJ Answer All Six Questions From Court? Answers Could Impact All Libertad Act Lawsuits.

MARIO DEL VALLE, ENRIQUE FALLA, MARIO ECHEVARRIA V. EXPEDIA, INC., HOTELS.COM L.P., HOTELS.COM GP, ORBITZ, LLC, BOOKING.COM B.V., BOOKING HOLDINGS INC.  Initial defendants were: TRIVAGO GMBH, BOOKING.COM B.V., GRUPO HOTELERO GRAN CARIBE, CORPORACION DE COMERCIO Y TURISMO INTERNACIONAL CUBANACAN S.A., GRUPO DE TURISMO GAVIOTA S.A., RAUL DOE I-5, AND MARIELA ROE 1-5, [1:19-cv-22619 Southern Florida District; 20-12407 11th Circuit Court of Appeals] 

Rivero Mestre LLP (plaintiff)
Manuel Vazquez, P.A. (plaintiff)
Baker & McKenzie, LLP (defendant)
Scott Douglass & McConnico (defendant)
Akerman (defendant)

Notice of Amicus Participation By The United States (3/22/22)
Link To Libertad Act Lawsuit Filing Statistics

On Appeal from the United States District Court for the Southern District of Florida .  BEFORE: JORDAN, NEWSOM, and BURKE,* District Judge.  ORDER: The Court invites the United States – through the Attorney General, the Solicitor General, and/or the Office of the Legal Adviser to the State Department –to file an amicus brief in Mario Del Valle, et al., v. Trivago GMBH, et al., No.20-12407 (argued Oct. 4, 2021), Javier Garcia-Bengochea v. Carnival Corporation, No. 20-12960 (argued Oct. 4, 2021), and Javier Garcia-Bengochea v. Royal Caribbean Cruises, LTD., No. 20-14251 (argued Oct. 4, 2021), pursuant to Fed.R.App.P. 29(a)....The Court invites the United States to address the following questions concerning the Helms-Burton Act, 22 U.S.C. § 6082:...The court asks that the U.S. file its amicus brief by 2/25/22... AJ, KCN and LCB (See attached order for complete text) [20-12407, 20-12960, 20-14251] [Entered: 12/20/2021 04:48 PM].  The Court invites the United States to address the following questions concerning the Helms-Burton Act, 22 U.S.C. § 6082:

1. Does the term “United States national” in 22 U.S.C. §§ 6082(a)(4)(B) and 6082(a)(4)(C) refer to the plaintiff bringing the action, or the original claimant to the confiscated property, or both?

2. What does the word “acquire[ ]” in 22 U.S.C. § 6082(a)(4)(B) mean? Is inheritance encompassed in the term “acquire[ ]?” And if “acquire[ ]” does include inheritance, at what point is a claim “acquire[d]” by an heir within the meaning of the statute?

3. How, if at all, does the phrase “assignment for value” in 22 U.S.C. §6082(a)(4)(C) affect the pool of eligible claimants compared to the pool of eligible claimants under 22 U.S.C. §6082(a)(4)(B)?

4. What effect, if any, does the President’s ability to suspend Title III pursuant to 22 U.S.C. § 6085(b) have on defining the class of eligible claimants who can bring an action under 22 U.S.C. § 6082(a)(4)? Does the President’s ability to suspend Title III imply that the statute was drafted to allow the heirs of American citizens – whose property was unlawfully confiscated and “trafficked” by third parties – to bring claims under 22 U.S.C. § 6082(a)(4)?

5. What effect, if any, does the lawful travel exception, 22 U.S.C. §6023(13)(B)(iii), have on the plaintiffs’ claims? What effect, if any, does the possibility that the Office of Foreign Assets Control (OFAC) can change the permissible reasons for travel to Cuba have on the lawful travel exception?

6. What does the phrase “incident to lawful travel” in 22 U.S.C. §6023(13)(B)(iii) mean? Who or what defines “lawful travel” (e.g. OFAC)? What guidance should persons and entities look to in determining whether their activities are “incident to lawful travel?”

The Court asks that the United States file its amicus brief by February 25, 2022, at which time the parties in the cases will be permitted to respond. Should the United States elect not to file an amicus brief, it should so notify the Court by January 25, 2022.

U.S. ATTORNEY GENERAL
UNITED STATES SOLICITOR GENERAL
OFFICE OF THE LEGAL ADVISER, U.S. DEPARTMENT OF STATE
UNITED STATES OF AMERICA (Southern District Attorneys)

“ORDER: The motion filed by the United States for an extension of time, up to and including April 11, 2022, to file the amicus brief is GRANTED. The motion for an extension to March 11, 2022, to notify the Court that the United States elects not to file an amicus brief is GRANTED.” 

Links To Related Posts 

U.S. Department Of Justice Requests And Is Granted Until 11 March 2022 To Decide Whether To Submit Answers To Six Questions To Court Of Appeals.  February 01, 2022 

Court Of Appeals "Invites" Biden-Harris Administration To Answer Six Questions In Libertad Act Lawsuits That May Impact More Than Cuba Lawsuits. Will They Answer? Due By 25 January 2022.  December 31, 2021  

American Airlines Libertad Title III Lawsuit Becomes First To Seek Review By United States Supreme Court. Twenty-Nine Months From District Court To SCOTUS Is Fast.  December 20, 2021 

11th Circuit Court Of Appeals Hearing Recording For Del Valle Vs. Expedia, Hotels, Orbitz, Trivago, Etc. Libertad Act Lawsuit.  December 16, 2021 

Did U.S. Department Of Justice “Intervene” And Tip The Scale In A Libertad Act Title III Cuba Lawsuit On Behalf Of United Kingdom-Based Company? Defendants Hope So.  September 01, 2021 

Plaintiff Files Appeal Against Expedia In Libertad Act Lawsuit.  September 05, 2020

Crowley Maritime Corporation Mostly Loses On Motion To Dismiss In Libertad Act Lawsuit. Judge Says Libertad Act Definition Of Trafficking Is Constitional.

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL, Plaintiff, v. CROWLEY MARITIME CORPORATION, Defendant. [3:20-cv-01426 Middle District Florida; Transferred To Florida Southern District 1:21-cv-20443]. 

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

Order (3/23/22)

Libertad Act Lawsuit Filing Statistics

Excerpts From Order

“The Supreme Court has explained that ‘[c]entral to assessing concreteness is whether the asserted harm has a “close relationship” to a harm traditionally recognized as providing a basis for a lawsuit in American courts—such as physical harm, monetary harm, or various intangible harms.’” Glen v. American Airlines, Inc., No. 20-10903, 2021 WL 3285307, at *2 (5th Cir. Aug. 2, 2021). Here, Plaintiffs allege that they were harmed when Defendants used the Confiscated Property “without consent from or paying adequate compensation to Plaintiffs.” [ECF No. 50 ¶ 144]. This harm “bears a close relationship to unjust enrichment, which has indisputable commonlaw roots.” Glen, 2021 WL 3285307, at *2. Indeed, Congress passed the Act, in part, because it found the remedies for “unjust enrichment from the use of wrongfully confiscated property . . . by private entities at the expense of the rightful owners of the property” to be ineffective. 22 U.S.C. § 6081(8). See Havana Docks, 484 F. Supp. 3d at 1192 (finding a concrete injury where the plaintiff “allege[d] that [defendant] profited from its use of the Subject Property at [plaintiff’s] expense.”). Accordingly, the Court finds that Plaintiffs have alleged a concrete and particularized harm.  

B. Traceability To have standing, Plaintiffs must also show that their injuries are “fairly traceable” to Defendants’ use of the Confiscated Property. Spokeo, 136 S. Ct. at 1547. “To show traceability, a plaintiff must allege that his injury is ‘connect[ed] with the conduct about which he complains.’” Glen, 2021 WL 3285307 (quoting Trump v. Hawaii, 138 S. Ct. 2392, 2416 (2018)). The SAC alleges that Defendants profited from their use of the Confiscated Property without compensating Plaintiffs. See [ECF No. 1 ¶¶ 1, 7, 11]. Accordingly, like in the Glen and the Havana Docks cases, “there exists a causal link between a claimant’s injury from the Cuban Government’s expropriation of their property and a subsequent trafficker’s unjust enrichment from its use of that confiscated property.” Havana Docks, 484 F. Supp. 3d at 1230. Therefore, the Court finds Plaintiff has adequately alleged traceability.  

C. Redressability “The element of redressability requires that ‘it must be likely, as opposed to merely speculative, that the injury will be redressed by a favorable decision.’” Hollywood Mobile Estates, Ltd. v. Seminole Tribe of Fla., 641 F.3d 1259, 1266 (11th Cir. 2011) (quoting Lujan, 504 U.S. at 561)). The parties do not dispute, and the Court agrees, that the element of redressability is properly alleged here. Accordingly, Plaintiffs have sufficiently established, at this stage of the litigation, that they have standing, and the Motion shall be denied on this ground. 

Defendants argue that the SAC must be dismissed because it fails to adequately allege that (1) Plaintiffs’ own a claim to the Container Terminal or the Concession; (2) Defendants’ alleged conduct constitutes “trafficking”; and (3) Defendants’ use of the Container Terminal is not “incident to lawful travel to Cuba.” [ECF No. 59]. The Court disagrees. 

Defendants focus much of their argument on the notion that Plaintiffs do not “own a claim” to the Container Terminal because ZEDM’s ports, docks, warehouses, and facilities did not exist until 2009, nearly fifty years after the Cuban government confiscated Plaintiffs’ property. Defendants’ argument is without merit. 

The Court finds that Plaintiffs sufficiently allege trafficking under the Act. First, Plaintiffs allege that Defendants use the Container Terminal, including storing their containers in the storage yard, and that using the Confiscated Property makes “[Defendants’] container business at the Port of Mariel possible and profitable.” [ECF No. 50 at ¶ 114]. This is enough to plausibly allege that Defendants “engage[d] in a commercial activity using or otherwise benefiting from confiscated property.” 22 U.S.C. § 6023(13)(A)(ii). In addition, Plaintiffs allege that ZEDM and AUSA all traffic in the Confiscated Property by developing and operating the Port of Mariel, and that Defendants profit from ZEDM and AUSA’s trafficking in the property. This is enough to plausibly allege that Defendants “profit[] from trafficking . . . by another person, or otherwise engage[] in trafficking . . . through another person.” 22 U.S.C. § 6023(13)(A)(iii). Accordingly, the Court finds that Plaintiffs have sufficiently alleged a violation of the Act. 

Defendants argue that Plaintiffs are required to plead around the lawful travel defense set forth in § 6023(13). The Court disagrees. “The lawful travel exception is an affirmative defense to trafficking that must be established by [Defendants], not negated by Plaintiff.” Garcia-Bengochea v. Carnival Corp, 407 F. Supp. 3d 1281, 1286 (S.D. Fla. 2019).11 Therefore, the burden is on Defendants to establish that their activity in the Port of Mariel and Container Terminals was incident to lawful travel to Cuba. Id. at 1287. As this defense is not apparent on the face of the SAC, it is inappropriate for consideration at this stage of the litigation. Id. 

Defendants argue that the Estates and Heirs do not have an actionable ownership interest in the Confiscated Property because they acquired their claims after March 12, 1996. On this point, the Court agrees. 

In addition, the Court does not find the term “trafficking” to be unconstitutionally vague. A civil statute “is not unconstitutionally vague if persons of reasonable intelligence can derive a core meaning from the statute.” Seniors Civil Lib. Ass’n, Inc. v. Kemp, 965 F.2d 1030, 1036 (11th Cir. 1992) (internal citations and quotations omitted). This Court, and the many other courts interpreting the Act, have not had difficulty in discerning the meaning of “trafficking.” Accordingly, the Motion on this ground is denied. 

Title III Does Not Violate the Due Process Clause.

In Belarus, Minsk Airport Duty Free Stores, Bacardi Outselling Havana Club

In Belarus, Minsk International Airport Duty Free retail stores have both Havana Club rum and Bacardi rum.  From the display sign, even though Belarus and the Republic of Cuba have a commercial, economic, and political relationship, travelers are preferring the Bermuda-based brand rather than the Havana-based brand. Republic of Cuba cigar brands are represented.

Related Post: At Vnukovo International Airport In Moscow, Havana Club Rum Has A Presence, But Bacardi Has More Real Estate In The Duty Free Shop. For Cigars, It's All About Cuba's Brands March 18, 2022

169-Page Ruling Against Four Largest Cruise Lines- They Engaged In Tourism In Cuba. Now A Binary Choice: Jury Trial In Miami, Florida, In May 2022 Or US$100+ Million Settlement? Is There Insurance?

With Judge Bloom’s ruling, the four cruise lines are nearing a binary choice- accept a jury trial or negotiate a settlement. As the plaintiffs seem to be seeking compensation (potentially US$100 million US$400 million) based upon what the Libertad Act permits, the four cruise lines will determine if a decision by a jury could be more costly than using the Libertad Act formulas to calculate what is owed to the plaintiffs. Key to remember- the jury will be residents of the Miami, Florida, area, and will certainly include individuals of Cuban descent.

HAVANA DOCKS CORPORATION V. NORWEGIAN CRUISE LINE HOLDINGS, LTD. [1:19-cv-23591; Southern Florida District]
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Hogan Lovells US LLP (defendant)

HAVANA DOCKS CORPORATION VS. ROYAL CARIBBEAN CRUISES, LTD. [1:19-cv-23590; Southern Florida District]
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Holland & Knight (defendant)

HAVANA DOCKS CORPORATION V. MSC CRUISES SA CO, AND MSC CRUISES (USA) INC. [1:19-cv-23588; Southern Florida District]
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Venable (defendant)

HAVANA DOCKS CORPORATION VS. CARNIVAL CORPORATION D/B/A/ CARNIVAL CRUISE LINES [1:19-cv-21724; Southern Florida District]
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Jones Walker (defendant)
Boies Schiller Flexner LLP (defendant)
Akerman (defendant)

LINK To 169-Page Omnibus Order (3/21/22)
LINK To Libertad Act Lawsuit Filing Statistics

LINK To Previous Post
Federal Judge Rules Libertad Act Lawsuit Against Carnival, MSC, Norwegian, And Royal Caribbean Will Be Heard By Jury In May 2022. "Cuban-Americans" On Jury May Be Problematic For Defendants. February 23, 2022

MSME's In Cuba Continue To Be Created, Continue To Expand While Biden-Harris Administration Ignores Opportunities For U.S.-Sourced Investment And Financing... 414 Days

OnCuba News (Miami, Florida)- 17 March 2022

Cuba approaches 2500 MSMEs

On Thursday, the Ministry of Economy and Planning (MEP) announced the authorization of 115 new MSMEs, of which 113 were private and two state-owned, as well as three Non-Agricultural Cooperatives (CNA). The Cuban government authorized another hundred Micro, Small and Medium Enterprises (MSMEs), bringing these new economic actors closer to 2500 since the approval of the first in September of last year. In total, of the 115 new MSMEs authorized, 113 are private and two are state-owned, as reported by the Ministry of Economy and Planning (MEP). They are also joined by three Non-Agricultural Cooperatives (CNA), the entity said on its Twitter account. In this way, there are already 2,478 new actors endorsed by the authorities, as part of the reforms promoted by them, which, however, maintain state enterprises as the main protagonists of the Cuban economy. 

To date, the country has 2388 private MSMEs, 51 state-owned MSMEs, and 39 ANCs. 57% of these actors are reconversions of pre-existing businesses, while 43% correspond to new ventures, according to the MEP, which sets more than 40,000 jobs generated by them. Of these actors, 99 are part of local development projects, 34 have previously carried out export operations and 11 were developed in the Science and Technology Park of Havana. These are figures that must continue to grow, as the government has said it will not put limits on their quantity.

At the beginning of this week the MEP expanded its call to create MSMEs dedicated to accommodation, beauty services and services to buildings and industrial facilities. Until now, its permits already included food production, computer science, the circular economy and recycling, manufacturing, logistics and transport activities, construction services and gastronomy, among other activities. MSMEs, approved as an economic actor in the middle of last year, can be state-, private or mixed property and are recognized as an economic unit with legal personality with its own characteristics. The law allows them to have one or more partners and be incorporated as commercial companies, although they cannot operate in areas recognized as "strategic" for the State such as health, telecommunications, defense and the press. 

Center For Democracy In The Americas (Washington DC)- 18 March 2022

Almost 2,500 micro, small, and medium size enterprises (SMEs or PYMES in Spanish) have been authorized to operate in Cuba since the long-awaited law regulating SMEs came into effect in September 2021, OnCuba News reports. Last week alone, 115 new SMEs were authorized, 113 of which are private enterprises and two of which are state-owned enterprises. According to a tweet from Oniel Diaz, co-founder of Cuban private business consulting firm AUGE, the number of SMEs has now surpassed the number of state-owned companies and commercial entities, with 2,276 private SMEs compared to 2,125 state-owned enterprises. The news of private SMEs outnumbering state-owned companies comes as Cuba’s Minister of the Economy, Alejandro Gil, announced that out of the 457 Cuban enterprises that reported a loss in the month of January, 446 were state enterprises. Most of the approved SMEs are focused on food production, with others focused on manufacturing, recycling, technology, and local development. Cuba’s government also announced last week that, in addition to the aforementioned business categories, SMEs could also be enterprises focused on accommodations, beauty services, and services to buildings and industrial facilities. Certain professionals such as accountants, lawyers, architects, and engineers, remain prohibited from forming companies, a regulation that has received pushback from economists. Learn more about the breakdown of SMEs by industry, province, and size, among other data, here.

SMEs only became operable in Cuba in September 2021 after Cuba’s Council of Ministers published the regulations that govern the creation and operation of SMEs in August 2021. Previously, without a framework for SMEs, those in Cuba’s private sector who wished to work as a company with multiple employees had to register as individuals and acquire a license as individual entrepreneurs, rather than registering as and/or licensing a business. Under the new legislation, SMEs can employ up to 100 workers and establish the equivalent of a private limited company with “members” and “employees.” The legalization of SMEs was a long-awaited move that economists advocated for as a way to boost the island’s economy. 

LINKS To Self-Employed, Micro, Small & Medium-Size Enterprise (MSME) Analyses  

Surprise Decision: Biden-Harris Administration Renews Trump-Pence Administration License To Export EVs To Embassies In Cuba. Company Offers To Donate EV Chargers To U.S. Embassy/Ambassador Residence  January 25, 2022 

Cuba Updates Status Of Micro, Small & Medium-Sized Enterprises  January 19, 2022 

Why Is National Security Council (NSC) In The White House Refusing To Permit U.S.-Based Investors/Financiers To Directly Support Women-Owned (Or Men-Owned) Businesses In Cuba? State Dept. Complicit?  January 06, 2022 

Embassy Of Italy: V International Workshop of Women Entrepreneurs In Cuba: "The Talent Of Women. Art, Crafts & Design"  January 06, 2022 

President Biden Rejects BIS License Application To Export Electric Vehicles/Chargers To Cuba's Self-Employed, MSME's. Reversal Of "General Policy Of Approval." President Trump Authorized EV Exports.  December 20, 2021 

Cuba Again Expanding MSME Authorizations To Include Accessing Foreign Capital, Foreign Bank Accounts, Local Development Projects Qualify.  December 02, 2021 

Why Won't Biden Administration Permit U.S. Entities To Invest/Finance MSMEs? In December, Cuba’s FIMELSA Begins Convertible Currency-Equivalent Loans At 6.5% For 120 Days; Lower For CUP.  November 25, 2021 

Update: More Than 700 Micro, Small And Medium-Sized Enterprises Approved In Cuba  November 25, 2021 

OFAC & BIS To 107 Tech Companies? Cuba. Yes, You Can Go There, But We Dare You. "Encourage & Enable" Not The Same As "Access & Use." Memo: Donilon, Klain, Ricchetti, Richmond, Sullivan.  November 23, 2021 

Will President Biden's Statement That His Is "a small business presidency” Extend To Supporting Small Businesses In Cuba?  November 22, 2021 

Update On Registration Of Micro, Small & Medium-Size Enterprises In Cuba. Now More Than 600.  November 21, 2021 

Cuba Continues To Report On Activity Of MSME's- The Numbers Increase.  November 06, 2021 

Joint Venture Between Banco de Sabadell Of Spain And Banco International de Comercio In Cuba Will Provide Financing In Foreign Currency To MSMEs & Non-Agricultural Cooperatives  November 05, 2021 

Beginning Today Residents Of Cuba May Purchase And Install Residential Solar Systems. Cost 55,000.00 Pesos (US$2,300.00). Call 7833-3333.  November 04, 2021  

Bormey srl Among The First 35 Newly-Constituted Medium-Sized Enterprises In Cuba, Exported 5,000 Peanut Bars To Italy. Is United States Next? U.S. Department Of State Regulations Would Approve.  October 26, 2021 

Cuba Approves First 35 MIPYME Applications- Confirms No Application Thus Far Denied. Many More Applications Expected. Result Beneficial For Biden Administration Goal To Support SME's.  September 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.  July 30, 2021 

ProLimp Cleaning In Cuba Precisely Type Of Entrepreneurship Biden Administration Should Support. Will Cuba Permit U.S. Venture Capitalists?  March 08, 2021 

Cuba To Unify Currencies; Result Could Present Opportunities For Biden Administration And U.S. Companies  December 11, 2020 

Florida Company Receives License To Export Electric Vehicles To Cuba; Charging Stations From New Jersey-Based Company.  January 25, 2017 

Restriction On Sale Of Premium Gasoline May Benefit Electric Vehicles & Solar Panels; Embassies Concerned.  April 07, 2017

At Vnukovo International Airport In Moscow, Havana Club Rum Has A Presence, But Bacardi Has More Real Estate In The Duty Free Shop. For Cigars, It's All About Cuba's Brands.

Although since 1959 governments of the Republic of Cuba have retained a special relationship with the then-U.S.S.R. and its primary political successor the Russian Federation, commercial relationships can be different than political relationships.  For example, in one of the duty free stores, Hamilton, Bermuda-based Bacardi rum products have a far more prominent display than does Havana, Republic of Cuba-based Havana Club rum products.

However, when the display is about cigars…. Behind these three humidors were all brands manufactured in the Republic of Cuba.       

However, when the display is about cigars…. Behind these three humidors were all brands manufactured in the Republic of Cuba.

Cubita Coffee From Cuba Available At GUM Department Store In Moscow

In a section of GUM department store which is located in the city of Moscow along Red Square across from the Kremlin, there are coffees from throughout the world.

And within that section are varieties and sizes of Cubita, the most well-known of coffee brands owned by Republic of Cuba government-operated companies.  On 17 March 2022, US$1.00=103.00 Rubles).

• Café En Grano 500 grams at 1,057.00 Rubles (US$10.26)

• Café En Grano 1000 grams at 1,990.00 Rubles (US$19.32)

• Café En Grano 250 grams at 578.00 Rubles (US$5.68)

• Café Torrefacto En Grano 1000 grams at 2,268.00 Rubles (US$22.01)

• Café de Cuba Caracolillo (Tradicional) 1000 grams at 2,150.00 Rubles (US$20.87)

Coffee from the Republic of Cuba is exported through Republic of Cuba government-opeated CUBAEXPORT under the auspice of the Ministry of Foreign Trade and Investment of the Republic of Cuba.

“CUBAEXPORT was created in 1965 by the Ministry of Foreign Trade to develop the export of food and various products in the international market. In 2013CUBAEXPORT integrates into the business group for foreign trade (GECOMEX). Its presence in the international market for over 50 years validates the strength and professionalism in business that it has developed in Europe, Japan, Australia, New Zealand, Canada, Guadeloupe and Martinique, the Middle East, Turkey and Greece among other countries. We provide technical and commercial assistance, systematically we monitor quality control for export and import, according to market requirements. The company has executive staff with several years of experience in the business and high professional level. CUBAEXPORT agencies have signed contracts with Global Commodities UK Ltd in London, England and GALAX Inc in Montreal, Canada to focus on European and Canadian markets respectively. Some other bee products are in promotion such as honey mixtures, propoleos and Bee wax; while among forest products the rosin gum, turpentine oil, hemp fibre and forest seeds.”

Geo.F. Trumper In London Releases "Havana" Deodorant, Adding To "Havana" Body Wash, Cologne

“Geo. F. Trumper is a British men's barber and perfumer in London, England, which sells its own brand of men's fragrances and personal grooming products. It was established in 1875 by George Francis William Trumper as a Gentlemen's Barber Shop. George Trumper was not only an excellent barber but also a master perfumer, and he soon gained a reputation as such among the gentlemen of London's elite.

Geo. F. Trumper operates two retail locations in London. The first one is in the original shop at 9 Curzon Street in Mayfair, and the second one is at 1 Duke of York Street in St James's. At the shop in Curzon Street, the interior retains the original mahogany cubicles and glass display cases that were installed in the 20th century. The firm's head office is located at 166 Fairbridge Road in north London.Evelyn Waugh refers to Geo. F. Trumper in his novel Brideshead Revisited, when he writes that Rex Mottram sends for a man from the establishment to shave Charles Ryder, Sebastian Flyte and Boy Mulcaster after they were held in jail on charges of driving while intoxicated.

In the James Bond novel On Her Majesty's Secret Service, Ian Fleming mentions a fragrance by Geo. F. Trumper, when Bond visits Marc-Ange Draco in Marseille and finds a bottle of Eucris in his bathroom.

In John le Carré's novel Tinker Tailor Soldier Spy, George Smiley is intercepted by a disagreeable minor character who had just had his hair cut at Trumper's establishment in Curzon Street.

In the "How Does Your Garden Grow?" episode of Agatha Christie's Poirot (season 3, episode 1), Hercule Poirot is seen leaving Trumper's Curzon Street shop after buying a fragrance there.”

BIS "Returned Without Action" License Application To Donate EV Chargers To U.S. Embassy In Havana Because "Ultimate Consignee" Cancelled Transaction

Colombia, Maryland-based Premier Automotive Export, Ltd., which also has an office in Miami, Florida, offered to donate and install electric vehicle charging stations (including solar capture) at the United States Embassy in Havana, Republic of Cuba, and at the official residence of the ambassador in Havana. 

On 4 March 2022, the Bureau of Industry and Security (BIS) of the United States Department of Commerce responded: 

“The reason printed below explains why the referenced Export License Application is (R)eturned (W)ithout (A)ction. When an application has been Returned Without Action and is being resubmitted, a new application form must be submitted. When a new form is submitted, it must reference the original application. The resubmission must be in accordance with the requirements existing at the time of the resubmission (See Section 748 of the Export Administration Regulations).” 

“REASON: This license application is returned without action (RWA) since the transaction was cancelled by the ultimate consigne. This application may not be used to export/reexport. The applicant is reminded that authorization is required to export or reexport to Cuba all items subject to the Export Administration Regulations (EAR). Please be advised that all export and reexport transactions are subject to the General Prohibitions in Part 736 of the EAR. Also, you are advised to consult the Bureau of Industry and Security’s “Know Your Customer” and Red Flags Guidance in Supplement 3 to Part 732 of the EAR.” 

“The Ultimate Consignee was the Embassy of the United States, Calzada E/L & M Streets, Vedado, Havana, Republic of Cuba.” 

On 3 February 2022, the United States Department of State responded to correspondence of 24 January 2022 from Premier Automotive Export, Ltd., to The Honorable Brian Nichols, Assistant Secretary of State for Western Hemisphere Affairs (WHA): 

“On behalf of Ambassador Nichols, I would like to extend our gratitude to you for your generous offer to donate and install four electric vehicle chargers for use at the United States Embassy in Cuba.  The Biden-Harris Administration has articulated the United States’ goal to accelerate and deploy electric vehicles and charging stations, and to enable a clean transportation future to combat climate change.  The United States Embassy in Cuba currently does not operate any electric vehicles at our Embassy compound or residences in Havana.  Due to impediments in the electrical infrastructure and a lack of trained mechanics on the island to service electric vehicles, it is unlikely that the United States Embassy will consider importing one or more electric vehicles for use in Cuba in the near future.  Given that your donation would largely remain unused at this time, we politely decline your kind offer.  Thank you again and best wishes on your continued efforts exporting green technologies throughout the Caribbean.” 

On 24 January 2022, Premier Automotive Export, Ltd. received a renewal of its license from the BIS to export gasoline-powered vehicles, electric-powered vehicles, and hybrid vehicles from the United States to the Republic of Cuba.  The authorized purchasers are diplomatic missions located in the Republic of Cuba, including the Embassy of the United States in the city of Havana, Republic of Cuba. 

On 3 December 2021, a spokesperson of the United States Department of State was quoted: “The Biden Administration has clearly articulated the United States’ goal to accelerate and deploy electric vehicles and charging stations, create good-paying, union jobs, and enable a clean transportation future to combat climate change. However, the United States Embassy in Cuba does not operate any electric vehicles nor has any solar power charging stations at our Embassy compound or residences in Havana. At this time, it would be unlikely that the United States Embassy consider importing one or more electric vehicles for use in Cuba in the near future due to impediments in the electrical infrastructure and lack of trained mechanics on the island to service electric vehicles.”   

Premier Automotive Export Ltd., submitted a license application to the BIS for authorization to donate to the United States Department of State four (4) electric vehicle (EV) chargers for use at the Embassy of the United States in Havana, Republic of Cuba, and for use at the Residence of the United States Ambassador in Havana, Republic of Cuba.  A letter relating to the donation was sent to the United States Department of State.  The company would also coordinate the installation of the electric vehicle chargers.  The selected electric vehicle chargers will service all vehicles currently available and those planned for production:   

2- Clipper Creek LCS-40 Level II 40 Amp Charger fitted with the J-1772 universal charging connector.  https://store.clippercreek.com/residential/hcs-40-hcs-40p-ev-charging-station  One Clipper Creek EV charger would be located at the United States Embassy and one Clipper Creek EV Charger would be located at the Residence of the United States Ambassador.  

2- Tesla Wallmount Connector Gen 3 (208/240V).  https://www.tesla.com/support/home-charging  One Tesla EV charger would be located at the United States Embassy and one Tesla EV Charger would be located at the Residence of the United States Ambassador.  

The reason for the donation of electric vehicle chargers from different manufacturers is twofold.  First, unknown which manufacturer and model of electric vehicle(s) will the United States Department of State purchase for use in the Republic of Cuba.  Second, the Biden-Harris Administration continues to promote favorably manufacturers and models of electric vehicles from companies with union representation for their employees.  Austin, Texas-based Tesla, Inc., is non-union.  Detroit, Michigan-based General Motors Company; Dearborn, Michigan-based Ford Motor Company; and Amsterdam, The Netherlands-based Stallantis N.V. (Chrysler, Dodge, Jeep, etc.) are union.  

Related Analysis Links 

U.S. Department Of State Appoints "Chief Sustainability Officer"- Mandate Text Includes Focus On "Electrifying Fleet" And "Host Partners" Does This Mean EVs For Cuba? President Biden Supports?  February 10, 2022 

While Promoting EV Use In The United States, Biden-Harris Administration Refuses To Permit Exports Of EVs To Cuba For Use By Re-Emerging Private Sector- And U.S. Embassy In Havana Does Not Want One.  February 08, 2022 

Surprise Decision: Biden-Harris Administration Renews Trump-Pence Administration License To Export EVs To Embassies In Cuba. Company Offers To Donate EV Chargers To U.S. Embassy/Ambassador Residence  January 25, 2022  

President Biden Rejects BIS License Application To Export Electric Vehicles/Chargers To Cuba's Self-Employed, MSME's. Reversal Of "General Policy Of Approval." President Trump Authorized EV Exports.  December 20, 2021  

Beginning Today Residents Of Cuba May Purchase And Install Residential Solar Systems. Cost 55,000.00 Pesos (US$2,300.00). Call 7833-3333.  November 04, 2021  

Cuba Has Nickel And Cobalt. Vehicle Electric Batteries Use Nickel And Cobalt. Cuba Should Benefit.  September 25, 2021   

Cuba Owes Partner Canada's Sherritt International Corporation Tens Of Millions Of US Dollars. But, Both Cuba & Patient Company (And Shareholders) Anticipate Profitable Role With Electric Vehicles.  July 03, 2021   

Restriction On Sale Of Premium Gasoline May Benefit Electric Vehicles & Solar Panels; Embassies Concerned.  April 07, 2017  

Florida Company Receives License To Export Electric Vehicles To Cuba; Charging Stations From New Jersey-Based Company.  January 25, 2017