Replying To A Wall Street Journal Editorial From Those Who Were Attacked And On Behalf Of Those Who Were Attacked.

The Wall Street Journal
New York, New York
19 May 2022

Biden’s Strange Help for Cuba: Why aid the struggling anti-American regime in Havana now?
By The Editorial Board

Relevant Excerpts: “The new policy allows U.S. financing for “independent” Cuban entrepreneurs, but no such thing exists. Reality isn’t stopping Team Biden, which on May 10 issued a license—from the Office of Foreign Assets Control—authorizing a U.S. company to invest and provide financing to a Cuban company…. The license likely violates the Cuban Liberty and Democratic Solidarity Act of 1996, which prohibits the extension of credit to Cuba.”  

On 10 May 2022, the Office of Foreign Assets Control (OFAC) issued a license for a United States-based entity, in this instance an LLC created specifically for the transaction, to deliver a direct equity investment in and provide direct financing to an officially-registered small business created, owned, and operated in the Republic of Cuba by a Republic of Cuba national.  The license application was submitted on 10 June 2021. 

The Wall Street Journal Editorial Board delivers two accusations.   

• First, there are no “independent” entrepreneurs in the Republic of Cuba.   

• Second, the license issued “likely violates” the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”)- and conveniently excludes precisely what is this “likely violation.”  

The first accusation is appalling, particularly having been delivered from a publication that celebrates entrepreneurs- and writes continually when these individuals encounter governmental headwinds- yet they persevere.  The Wall Street Journal always applauds their perseverance. 

The government of the Republic of Cuba is criticized for not trusting its 11.3 million citizens to make good decisions.  Those who criticize the decision by the OFAC are engaging in the same distrust- the message is the self-employed and owners and managers of micro, small, and medium-size enterprises (MSMEs) cannot be trusted not to be victimized by the government of the Republic of Cuba; that their efforts to create, to maintain, and expand their nascent businesses are nothing but a sham, a Potemkin Village from which the government of the Republic of Cuba is the sole beneficiary.  Are the 20,000+ Republic of Cuba nationals who have registered their properties with Airbnb dimwitted?  Are the owners of paladars (restaurants) engaging in fraud?  All these people are stupid?  11.3 million victims of the Depleting Gene Pool Theory?  That is insulting. 

There are thousands of Republic of Cuba nationals who have, according to the Editorial Board of The Wall Street Journal, taken the time and have not given up or given in despite obstacles, to shift from being a one-person operation to employing five, ten, twenty, or one hundred employees to maintain and grow their business.. but these efforts are for nothing, they are wasted time. 

Easy for the Editorial Board of The Wall Street Journal to pontificate from the comfort of their meeting room and disparage the courage, the fortitude, the brilliance of entrepreneurs in the Republic of Cuba who do not have high salaries, 401(k) plans, and the benefits that are derived from being employed by News Corp (2021 revenue US$9.36 billion).  How many of those on the Editorial Board of The Wall Street Journal have tried to create a business?  Created a business?  Managed a business? 

The Editorial Board of The Wall Street Journal has defined entrepreneurs in the Republic of Cuba as frauds- whether they know it or not; acknowledge it or not.  That is vulgar.  Disrespectful.   

Worse, the Editorial Board of The Wall Street Journal has defined entrepreneurs in the Republic of Cuba has stupid- dupes of their government and of themselves.  Self-duped.  Nice.  So very nice. 

The second accusation is equally appalling, but significantly not relevant to the license issued by the OFAC.  The “likely violation” of the Libertad Act is presumably referencing the following provision within the Libertad Act, although uncertain because the Editorial Board was not specific because generalities are so much more easily weaponized: 

“SEC. 103. PROHIBITION AGAINST INDIRECT FINANCING OF CUBA. (a) Prohibition.--Notwithstanding any other provision of law, no loan, credit, or other financing may be extended knowingly by a United States national, a permanent resident alien, or a United States agency to any person for the purpose of financing transactions involving any confiscated property the claim to which is owned by a United States national as of the date of the enactment of this Act, except for financing by the United States national owning such claim for a transaction permitted under United States law.” 

The Washington DC-based attorney, Robert L. Muse, who drafted the application for OFAC license and drafted the Contingent Investment Contract is available to alleviate the Editorial Board’s confusion about the legal basis for the OFAC license’s equity investment and loan provisions and correct the Editorial Board’s misunderstanding of the Libertad Act provision inaccurately implied in relation to entrepreneurs in the Republic of Cuba.  Why the Editorial Board did not reach out to Mr. Muse prior to publication of the editorial is obvious- the conversation would have invalidated the basis of the editorial message. 

The Editorial Board of The Wall Street Journal is sending up a flare, an SOS, for a concern that does not exist- and they know it does not exist.  Interestingly, they did not contact the owner of the LLC to directly ask any questions.  Why?  Reporters from other publications did without difficulty.   

The privately-owned company in the Republic of Cuba which will be the recipient of the direct equity investment and direct financing is as it has been described- privately owned.  The service-focused company is not using an asset upon which there is a certified claim. 

Rather than stage a written preemptive attack upon something new, the Editorial Board might have better served readers of The Wall Street Journal if they had waited until the equity investment was delivered; the financing was delivered.  Then, evaluate the operational impact of what the OFAC licensed and what the parties did with that OFAC license. 

And, this time, members of the Editorial Board will reach out and contact the principals for information prior to launching an attack upon what they know so painfully little about.

Complete Text In PDF Format

Biden-Harris Administration Certifies Cuba "Not Cooperating Fully With United States Antiterrorism Efforts"

Pursuant to section 40A of the Arms Export Control Act (22 U.S.C. 2781), and E.O. 13637, as amended, I hereby determine and certify to the Congress that the following countries are not cooperating fully with United States antiterrorism efforts: Iran, Democratic People's Republic of Korea (DPRK, or North Korea), Syria, Venezuela, and Cuba. This determination and certification shall be transmitted to the Congress and published in the Federal Register .

Dated: May 11, 2022.

Antony J. Blinken, Secretary of State.

[FR Doc. 2022-10829 Filed 5-19-22; 8:45 am] BILLING CODE 4710-AD-P

LINK TO PDF

Plaintiff, And Defendants Booking, Expedia, Hotels, Orbitz, Respond To Court Of Appeals After United States Department Of Justice Weighs In.

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)

04/15/2022 Open Document ORDER: On April 11, 2022, the Court received a “Motion by the United States to File Over-Length Brief” along with the “Brief for United States as Amicus Curiae.” The motion is GRANTED. The parties are DIRECTED to file, by May 6, 2022, supplemental letter briefs not to exceed 20 pages responding to the “Brief for the United States as Amicus Curiae.” [9640465-2] [9640479-2] [9640488-2] ENTERED FOR THE COURT – BY DIRECTION (See attached order for complete text) [20-12407, 20-12960, 20-14251] [Entered: 04/15/2022 08:39 AM]

Appelants Response (5/6/22)
Defendants-Appellees Response (5/6/22)

Supplemental Letter Brief- Javier Garcia-Bengochea (5/6/22)
Appellees' Supplemental Letter Brief- Carnival Corporation (5/6/22)
Appellee's Notice Of Joining Supplemental Letter Brief- Royal Caribbean (5/6/22)

Libertad Act Title III Lawsuit Filing Statistics

Excerpts:

“The Court posed six questions regarding construction of the Helms-Burton Act, 22 U.S.C. § 6021, et seq. (“the Act”) and invited the United States to file an amicus curiae brief answering each question. The United States filed its amicus curiae brief on April 11, 2022. As we further demonstrate below, many of those questions are inapplicable to Del Valle, are dehors the record on appeal and below, and were not briefed on appeal. That said, we submit this supplemental letter for the Court’s consideration.”

“Pursuant to the Court’s April 15, 2022 Order, we submit this supple mental letter brief on behalf of defendants–appellees Expedia Group, Inc., Hotels.com LP, Hotels.com GP, LLC, and Orbitz, LLC (collectively, the “Expedia Appellees”) in response to the Brief of the United States as Amicus
Curiae. Counsel for defendants–appellees Booking.com B.V. and Booking Holdings Inc. (collectively, the “Booking Appellees” and, together with the Expedia Appellees, “Appellees”) have reviewed this letter and join it. In answering the six questions that the Court posed in its December 20, 2021 Order, the United States’ brief discusses two aspects of the Helms USCA11 Case: 20-12407 Burton Act (the “Act”) relevant to this appeal: (1) the date-of-acquisition requirement in 22 U.S.C. § 6082(a)(4)(B) (see U.S. Br. 16–29), and (2) the lawful travel clause in the Act’s definition of traffics, 22 U.S.C. § 6023(13)(B)(iii) (see
U.S. Br. 30–38). We address each issue in turn.”

“The United States is correct that Plaintiffs who purport to have inherited their claims after March 12, 1996, are barred from bringing a Helms Burton action. The United States is also correct in its interpretation of the scope of the Lawful Travel Clause. It is clear that the regulatory context and legislative history undermine the overly-strict and illogical interpretation of the clause that Plaintiffs urge. The United States is incorrect, however, to suggest that Plaintiffs are relieved from pleading and proving that Appellees’ alleged conduct meets the entire definition of traffics, including the Lawful Travel Clause.”

Pernod Ricard Libertad Act Lawsuit: Plaintiff Requests 11th Circuit Court of Appeals Reverse Dismissal By District Court.

From Plaintiff: District Court should not have dismissed their Title III Libertad Act lawsuit due to lack of jurisdiction without holding first an evidentiary hearing on the issue. 

MARLENE CUETO IGLESIAS AND MARIAM IGLESIAS ALVAREZ V. PERNOD RICARD [1:20-cv-20157; Southern Florida District;21-12398 11th Circuit Court of Appeals]

Xander Law Group (plaintiff)
IPS Legal Group, P.A. (plaintiff)
Law Offices of Andre G. Raikhelson LLC (plaintiff)
Ainsworth & Clancy PLLC (plaintiff)
Carlton Fields P.A. (defendant)

Defendants’ Federal Rule Of Appellate Procedure 28(J) Notification (3/23/22)
Appellants’ Notice Of Supplemental Authority (3/16/22)
Notice Of Appeal (7/15/21)
Original Complaint (1/14/20)
Libertad Act Lawsuit Filing Statistics

01/24/2022- Assigned to tentative calendar number 19 in Miami during the week of May 16, 2022. [Entered: 01/24/2022 10:55 AM]

01/27/2022- THREE Additional copies of APPELLEE'S BRIEF AND SUPPLEMENTAL Appendix received from Irma Reboso Solares for Pernod Ricard and forwarded to the record room. [Entered: 01/27/2022 11:37 AM]

02/23/2022- Additional copies of APPELLANT'S BRIEF, REPLY BRIEF AND APPENDIX received from Wayne Atkins for Marlene Cueto Iglesias and Miriam Iglesias Alvarez and forwarded to the record room. [Entered: 02/24/2022 04:22 PM]

03/04/2022- Calendar issued as to cases to be orally argued the week of 05/16/2022 in Miami, Florida. Counsel are directed to electronically acknowledge receipt of this calendar by docketing the Calendar Receipt Acknowledged event in ECF (a document upload is not required). [Entered: 03/04/2022 09:18 AM]

03/04/2022- Attorney Wayne Atkins for Appellants Miriam Iglesias Alvarez and Marlene Cueto Iglesias hereby acknowledges receipt of a copy of the printed calendar for 05/18/2022. Wayne Atkins (305) 767-2001 will present argument. [21-12398] (ECF: Wayne Atkins) [Entered: 03/04/2022 10:09 AM]

03/07/2022- Attorney Irma Reboso Solares for Appellee Pernod Ricard hereby acknowledges receipt of a copy of the printed calendar for 05/18/2022. Irma Reboso Solares, Phone: 305-347-6843 will present argument. [21-12398] (ECF: Irma Solares) [Entered: 03/07/2022 10:52 AM]

03/08/2022- Oral argument scheduled. Argument Date: Wednesday, 05/18/2022 Argument Location: Miami, FL. [Entered: 03/08/2022 09:36 AM]

03/16/2022- Supplemental Authority filed by Appellants Miriam Iglesias Alvarez and Marlene Cueto Iglesias. [21-12398] (ECF: Wayne Atkins) [Entered: 03/16/2022 12:34 PM]

03/23/2022- Response to Supplemental Authority (28J) filed by Appellee Pernod Ricard. [21-12398] (ECF: Irma Solares) [Entered: 03/23/2022 10:26 AM]

05/18/2022- Oral argument held this date. Oral Argument presented by Wayne Atkins for Appellants Marlene Cueto Iglesias and Miriam Iglesias Alvarez and Irma Reboso Solares for Appellee Pernod Ricard. [Entered: 05/18/2022 11:03 AM]

On 16 May 2022 Biden-Harris Administration Announced New Cuba Policies To Be Made "In Short Order." Three Days For A Short Order?

The majority of country sanctions-related announcements from the Biden-Harris Administration (2021- ) have been delivered simultaneously with the issuance and publication of connected regulations from 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.

On 16 May 2022, the Biden-Harris Administration announced through published statements and briefings with journalists changes to United States commercial, economic, and political engagement with the Republic of Cuba. Thus far, neither the OFAC nor BIS have issued updates to its regulations and Frequently Asked Questions.

Unknown is the reason(s) for the distance between announcements, statements, and regulations. Might the 16 May 2022 date have not been the intended date? Might the announcements and statements been issued prior to what had been scheduled? Might the Biden-Harris Administration be awaiting reaction and the craft regulations which reflect a desired domestic political landscape? Might the distance have been the plan all along?

United States Department of State (16 May 2022): “The Administration is working expeditiously to effectuate these changes, which will be implemented via steps taken and regulatory changes made by relevant Departments and Agencies in short order.”

Definition of short-order (Merriam-Webster Dictionary)
: preparing or serving food that can be cooked quickly to a customer's order

The White House (16 May 2022): “I'll say that this is the result of work we've been doing over the last year as a part of the policy review of our Cuba policy.”

United States Department of State (16 May 2022) Excerpts: “Today, the United States is taking a series of measures to increase support for the Cuban people in line with our national security interests.” And “Specifically, the Administration will:”

On 473rd Day, Biden-Harris Administration Completes Cuba Policy Review- Returning (Somewhat) To 2015-2020

United States Department of State
Washington DC
16 May 2022

Biden Administration Measures to Support the Cuban People
Office of the Spokesperson

Today, the United States is taking a series of measures to increase support for the Cuban people in line with our national security interests. The Cuban people are confronting an unprecedented humanitarian crisis — and our policy will continue to focus on empowering the Cuban people to help them create a future free from repression and economic suffering. Specifically, the Administration will:

• Facilitate family reunification by reinstating the Cuban Family Reunification Parole (CFRP) Program and continuing to increase capacity for consular services. Limited immigrant visa processing resumed in Havana on May 3, 2022. We will reinstate the CFRP and increase visa processing in Havana while continuing to process the majority of immigrant visa cases at the U.S. Embassy in Georgetown, Guyana.

• Strengthen family ties and facilitate educational connections for the U.S. and Cuban people by expanding authorized travel in support of the Cuban people. We will authorize scheduled and charter flights to locations beyond Havana. We also will implement regulatory changes to reinstate group people-to-people and other categories of group educational travel, as well as certain travel related to professional meetings and professional research, including to support expanded Internet access and remittance processing companies and to provide additional support to Cuban entrepreneurs. We are not reinstating individual people-to-people travel.

• Increase support for independent Cuban entrepreneurs. We will encourage commercial opportunities outside of the state sector by authorizing access to expanded cloud technology, application programming interfaces, and e-commerce platforms. We will explore options to expand support of additional payment options for Internet-based activities, electronic payments, and business with independent Cuban entrepreneurs. We will work to expand entrepreneurs’ access to microfinance and training.

• Ensure that remittances flow more freely to the Cuban people while not enriching those who perpetrate human rights abuses. Specifically, we will remove the current limit on family remittances of $1,000 per quarter per sender-receiver pair and will authorize donative (i.e., non-family) remittances, which will support independent Cuban entrepreneurs. We will engage with electronic payment processors to encourage increased Cuban market accessibility. We will not remove entities from the Cuba Restricted List.

• The Administration is working expeditiously to effectuate these changes, which will be implemented via steps taken and regulatory changes made by relevant Departments and Agencies in short order.

United States Department of State
Washington DC
16 May 2022

Biden Administration Expands Support to the Cuban People
Ned Price, Department Spokesperson

The Administration’s policy towards Cuba continues to focus first and foremost on support for the Cuban people, including their human rights and their political and economic well-being.

Today, the Administration announced measures to further support the Cuban people, providing them additional tools to pursue a life free from Cuban government oppression and to seek greater economic opportunities.

We will reinstate the Cuban Family Reunification Parole (CFRP) Program and further increase consular services and visa processing, making it possible for more Cubans to join their families in the United States via regular migration channels.

We will make it easier for families to visit their relatives in Cuba and for authorized U.S. travelers to engage with the Cuban people, attend meetings, and conduct research.

We will encourage the growth of Cuba’s private sector by supporting greater access to U.S. Internet services, applications, and e-commerce platforms. We will support new avenues for electronic payments and for U.S. business activities with independent Cuban entrepreneurs, including through increased access to microfinance and training.

We also will support Cuban families and entrepreneurs by enabling increased remittance flows to the Cuban people in ways that do not enrich human rights abusers. We will lift the family remittance cap of $1,000 per quarter and will support donative remittances to Cuban entrepreneurs, both with the goal of further empowering families to support each other and for entrepreneurs to expand their businesses.

With these actions, we aim to support Cubans’ aspirations for freedom and for greater economic opportunities so that they can lead successful lives at home. We continue to call on the Cuban government to immediately release political prisoners, to respect the Cuban people’s fundamental freedoms and to allow the Cuban people to determine their own futures.

The White House
Washington DC
17 May 2022

Q No, just on one other topic. Yesterday's Cuba announcement from the administration -- how closely is that related to the Summit of the Americas coming up? And when can we expect to see those formal invitations go out to the nations?
MS. JEAN-PIERRE: So, I don't have anything new on the invites just quite yet. But let me just give you a little bit of the announcement yesterday: The Cuban people are confronting an unprecedented humanitarian crisis, and our policy will continue to focus on empowering the Cuban people to help them create a future free from repression and economic suffering. The President is fulfilling his commitment to the Cuban- American community and their family members in Cuba by facilitating family reunifications, strengthening fam- -- family ties and facilitating educational connections, increasing support for independent Cuban entrepreneurs, ensuring that the remittances flow more freely to Cuban people while not enriching those who perpetrate human rights abuses. These policy are designed to center on human rights and empowering the Cuban people to determine their own future. And so that is -- that is our focus. I know you asked me “Why now?” So the -- following the large-scale protests in July 2021, President -- President Biden directed his national security team to take action in two primary ways. And those are -- those what -- is what I just listed out. And that's where it came from.
Q Why does the Biden administration feel confident in the safety of the U.S. resources they're sending to Cuba with these new steps when these anomalous health incidents haven't been solved?
MS. JEAN-PIERRE: Well, you know, I get -- I understand the question, but at the same time, we have to make sure that we're helping the Cuban people. To your -- to your question, that's something that we're monitoring, clearly, and just keeping a close eye on. But we also have to make sure that the Cuban people does -- do not suffer.
Q And does the U.S. have a plan?
MS. JEAN-PIERRE: So that’s our focus there.
Q Does the U.S. have a plan if those attacks continue in Cuba?
MS. JEAN-PIERRE: I don't have anything more to share beyond the announcement that we made yesterday. We are going to have our National Security Advisor, Jake Sullivan, with me at the podium tomorrow. So we can -- that's a question you can ask him.

With U.S. Government Authorization For First Direct Equity Investment Into A Private Company In Cuba, Here Is Important Context And Details. About The Parties; About The Message.

Foremost, let everyone not lose, or worse ignore, what is most significant:  After eleven months of review, for the first time in sixty years the United States government authorized United States equity investment and financing for a private company located in the Republic of Cuba. 

There is now a choice where one week ago there was not a choice.  Gaining choice is important, though nothing is guaranteed- a sound business plan and a sound Republic of Cuba-based enterprise are prerequisites to a successful Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington DC application.  Equally necessary is an understanding of the inter-agency review process applicable to complex, policy-driven OFAC licensing.   

The Biden-Harris Administration (2021- ) directed the OFAC to issue the first license authorizing an entity subject to United States jurisdiction (which is not affiliated directly or indirectly with an individual of Cuban descent) to deliver a direct equity investment to and authorizing direct financing (microloan) for an officially registered privately-owned company (in the service sector) located in the Republic of Cuba and owned by a Republic of Cuba national.  Neither entity in the transaction is connected with the other in terms of commercial relationships or family relationships.  The parties did not have connectivity prior to the transaction.  The OFAC license was submitted on 10 June 2021 and the OFAC license was issued on 10 May 2022. The U.S.-Cuba Trade and Economic Council assisted the parties during the process.  

An LLC was specifically created in the United States to serve solely as the equity delivery vehicle and financing delivery vehicle for the transaction.  The use of an LLC was to lend familiarity both in the United States and in the Republic of Cuba. 

The self-employed and owners/management of micro, small, and medium-sized enterprises (MSMEs) and the government of the Republic of Cuba remain in debate as to degrees of latitude, flexibility, and opportunity.  Debating regulations occurs in every country.  Betting against the self-employed and MSMEs is a mistake.  The decision by the Biden-Harris Administration has shifted the odds in favor of the private sectors. 

During the last three years, the government of the Republic of Cuba has enacted statutory, regulatory, and policy changes impacting the self-employed and MSMEs located in the Republic of Cuba.   

While the process remains incomplete and uneven both from the perspective of the government of the Republic of Cuba and the perspective of those impacted, an important result has been an expansion of the role of the self-employed and MSME’s within the commercial, economic, and political infrastructure of the Republic of Cuba.

Coinciding with decisions by the government of the Republic of Cuba relating to the re-emerging private sector, beginning in 2019 the U.S.-Cuba Trade and Economic Council expanded its search for opportunities to support the re-emerging private sector.  A focus was toward the movement of capital and enhancing export and import channels although statutes, regulations, and policies within the Republic of Cuba governing such activity had yet to be fully implemented and statutes, regulations, and policies in the United States did not yet exist. 

An existing, twenty-two year focus of the U.S.-Cuba Trade and Economic Council was seeking from the OFAC the re-establishment of direct correspondent banking and re-establishment of U-turn transactions for financial institutions located in the United States and in the Republic of Cuba primarily so transactions relating to the export from the United States of authorized agricultural commodities, food products, healthcare products, and for authorized services would be direct rather than require the use of a financial institution located in a third country. 

• Incredulously, the Obama-Biden Administration (2009-2017) had authorized United States-based financial institutions to have correspondent accounts at financial institutions located in the Republic of Cuba, but did not authorize Republic of Cuba-based financial institutions to have correspondent accounts with financial institutions located in the United States. 

• For perspective, since the first agricultural commodity and food product exports using provisions of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000 were delivered to the Republic of Cuba in December 2001, more than US$6.6 billion in cash payments have been paid to United States-based exporters- with every payment needing to transit through a third-country financial institution, for which it would receive a unnecessary commission.  Healthcare product exports (US$27.3 million since 2003) using provisions of the Cuban Democracy Act (CDA) of 1996 also require the use third-country financial institutions to effectuate payment to the United States-based exporters.

In the first half of 2021, a post viewed on a social media platform led to an email sent to the owner of a service-related company created by a Republic of Cuba national residing in the Republic of Cuba and operating in the Republic of Cuba.  The question posed: Would the owner of the company be interested in receiving an equity investment and loan to support the expansion of the company? 

Once the owner of the company agreed to the idea of an equity investment and loan, several months of discussions and negotiations commenced where the parties had the advice of legal counsel and outside advisors.

With the goal of maintaining confidentiality and ease of communication, John Kavulich, president of the U.S.-Cuba Trade and Economic Council, using personal funds created an LLC for the specific purpose of providing the equity investment and loan to the Republic of Cuba-based company.  Mr. Robert Muse, a Washington DC-based attorney of preeminent experience, was retained to draft the Contingent Investment Contract and to create and shepherd the license application (with supporting materials) submitted to the OFAC.  Mr. Muse had experience with drafting and shepherding OFAC license applications for companies where once issued the OFAC licenses would set precedent.

With that, an eleven-month process commenced.

If the OFAC were to issue a license, the expectation was to make public as quickly as possible the existence of the license.  This was consistent with the U.S.-Cuba Trade and Economic Council’s efforts since its creation in 1994- to expand lawful, transparent, accountable, and efficient opportunities for United States companies to engage with entities located in the Republic of Cuba and ensure that those opportunities become public for all to use or not use; their choice.

Why not identify name of the United States-based entity nor the name of the Republic of Cuba-based entity?

The first issue is addressed above.

As to the second issue, the parties need to await the decisions by the government of the Republic of Cuba.  There remains much to do, and the parties require privacy to do it.

There have been comments about the decision by the Biden-Harris Administration to authorize the OFAC to issue a license for the first direct equity investment in and first direct financing to an officially-registered, privately-owned company in the Republic of Cuba.

Individuals subject to United States jurisdiction residing in the United States have since the first one hundred and five self-employed categories were authorized in 1993 in the Republic of Cuba provided financial support to family members and friends.  Giving funds to an individual to create a business is not an unusual occurrence in any country.  What comes next, as the business matures, as the business seeks to expand, are investors who provide capital in return for equity and individuals and bankers who providing financing.  Where individuals criticize the government of the Republic of Cuba for a lack of transparency they too should applaud the Biden-Harris Administration for bringing legality and transparency to where it had been lacking.

Everyone seeking to support the use of the re-emerging post-COVID-19 private sectors in the Republic of Cuba- restaurants (paladars), bed and breakfasts (Airbnb-connected), manufacturers (equipment, food products, etc.), service providers (repair, Internet applications, refurbishment, design, cleaning, artists, etc.) should be applauding the recognition by the OFAC of the essential expansion from gifting to equity investment and financing.

The government of the Republic of Cuba will now respond to the initiative of the government of the United States.  The response may not require much effort- perhaps clarification of an existing regulation or policy; perhaps a new regulation or policy.  The result needs to provide a landscape welcoming for direct equity investments and direct financing to the self-employed and MSMEs. 

The Biden-Harris Administration has grasped an offensive commercial posture, as it should, which is reflected in part by previous statements:

• “Which is why I’m proud to say: If you look at my presidency so far, it’s a jobs presidency and it’s a small business presidency.”  Joseph Biden, 46th President of the United States 

• “But Cuba is not represented solely by its leadership. There are many different sectors that we can and should work with to support progress in Cuba- including entrepreneurs, religious groups, universities, young people and human rights defenders.”  Joseph Biden, 46th President of the United States 

• “The United States recommits to accompanying the Cuban people in your quest to determine your own future.  We will support those improving the lives of families and workers, cuentapropistas who have forged their own economic paths, and all who are building a better Cuba- and a better tomorrow for themselves in Cuba.”  Antony Blinken, United States Secretary of State  

Is not taking a chance, adopting a strategy for the unknown, what being an entrepreneur is all about?  The company in the Republic of Cuba moved at a speed faster than the government of the Republic of Cuba and at a speed faster than the government of the United States.  In the business community, taking such a risk is applauded.

Good News For Private Businesses: Extended Again Because Of "Favorable Impact On The Population"... No Import Duty Payment Required For Items In Accompanied Baggage Through 31 December 2022.

General Customs Agency of the Republic of Cuba
Havana, Republic of Cuba
13 May 2022

In December 2021, the Ministry of Finance and Prices issued Resolution 466 published in the Extraordinary Official Gazette No. 102, which extended until June 30, 2022, the flexibility of importing food, hygiene and medicines in luggage accompanied by passengers. arriving in the country, a measure that has had a favorable impact on the population. Considering that the conditions that supported this measure are maintained, the following has been decided:

• Extend from July 1 to December 31 of the current year, on a temporary basis, the non-commercial importation of food, hygiene and medicines, by way of passengers as accompanied luggage, without limits in value, quantities and duty free.

• It is reiterated that in order to enjoy this benefit, it is a requirement that said products be differentiated, in the accompanied baggage, from articles of another nature.

• It is also extended until December 31, the tariff benefits granted by the Ministry of Finance and Prices, related to the importation of these products by national entities, as well as for supplies and raw materials that authorized entities import to the forms of non-state management.

• Information will continue to be provided to the population in the coming days, through the national media, the websites and institutional profiles on the social networks of the Ministry of Finance and Prices and the General Customs of the Republic.

MINISTERIO DE FINANZAS Y PRECIOS (https://www.mfp.gob.cu/inicio/portada) 

La Gaceta Oficial No. 37 Extraordinaria, de 13 de mayo de 2022, publica la Resolución 138 del 2022 del Ministerio de Finanzas y Precios que extiende hasta el 31 de diciembre del 2022, la vigencia de los beneficios temporales concedidos en la Resolución 309, del 15 de julio de 2021 referentes a la exoneración de pago del Impuesto Aduanero de la importación sin carácter comercial de alimentos, aseo y medicamentos, por la vía de pasajeros como equipaje acompañado, sin límites en el valor y cantidades, y libre de pago de los aranceles.  

De igual manera se prorrogan los beneficios arancelarios otorgados mediante las resoluciones 318 y 321 de julio de 2021, de la exoneración de pago del Impuesto Aduanero por la importación de estos productos, a las entidades estatales y asociaciones económicas internacionales, así como para los insumos y materias primas que entidades estatales importen con destino a las formas de gestión no estatales. 

Estas medidas tienen como objetivo aliviar la situación de desabastecimiento en el mercado nacional ante el incremento de los precios de importación de las mercancías, así como los costos de producción por el alza de precios de las materias primas y los fletes en el mercado internacional, y estimular la producción de bienes y prestación de servicios por la formas de gestión no estatales.

En correspondencia con la prórroga de los beneficios otorgados por el Ministerio de Finanzas y Precios, la Aduana General de la República emite la Resolución 104 de 2022, prorrogando lo dispuesto en la Resolución 213 de 2021, que establece la no aplicación de forma temporal de lo dispuesto en la Resolución 206 de 2014 de la propia autoridad, en cuanto a los límites a las importaciones no comerciales que realizan las personas naturales de los productos que clasifiquen como alimentos, medicamentos y aseo que integren el equipaje acompañado de los pasajeros, siempre que se presenten ante la Aduana separados del resto de los productos. 

Descargar la Gaceta aquí

MINISTERIO DE FINANZAS Y PRECIOS

Judge To Carnival, MSC, Norwegian, Royal Caribbean Cruise Line Defendents: "You Have Failed To Meet The Heavy Burden" So Three-Year Very Expensive Litigation To Shareholders Continues.

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)

Order On Motion For Certification For Interlocutory Appeal And Motion To Stay (5/13/22)
Plaintiff’s Response To Defendants’ Partial Objections To The Omnibus Report And Recommendation Regarding Daubert Motions (5/13/22)
Libertad Act Lawsuit Filing Statistics

Excerpts From Judge Ruling: 

Defendants argue that the second question, like the first, presents an issue of first impression, and as such, there is substantial grounds for difference of opinion. In response, Havana Docks contends that there is no substantial ground for difference of opinion because the statutory language is unequivocal in directing that courts must accept the FCSC’s determination as conclusive, and that courts lack jurisdiction to review the FCSC’s legal and factual determinations. See 22 U.S.C. §§ 6083(a)(1), 1622g, 1623(h).  

Upon review, the Court must disagree with Defendants that the fact that they raise a Due Process challenge necessarily indicates that interlocutory review would be proper in these cases. To be sure, Defendants raise an interesting issue, but not one that would overcome the strong presumption against interlocutory appeals. 

Finally, Defendants argue that resolution of the second question might indicate that a different type of trial is required, if at all. They contend that if the Eleventh Circuit were to determine that Defendants have a constitutional right to question the basis of the FCSC’s determinations, those challenges would impact the measure of damages in these cases. In response, Havana Docks argues that an interlocutory appeal of the second question would potentially multiply proceedings. On this point, the Court agrees with Havana Docks, since a finding that Defendants may challenge the FCSC’s legal and factual determinations would require additional analysis with respect to the circumstances underlying the FCSC process in these cases. IV.  

CONCLUSION Based on the discussion above, the Court finds that Defendants have failed to meet the heavy burden of establishing that interlocutory appeal is warranted. Accordingly, the questions presented for certification do not merit deviation from the general principle that appeals should be conducted after final judgment. See McFarlin, 381 F.3d at 1264. Therefore, the Court further finds that the stays Defendants request are not warranted.

Biden-Harris Administration Approves First Equity Investment Since 1960 In A Private Cuban Company

The Biden-Harris Administration (2021- ) has directed the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington DC to issue the first license authorizing an entity subject to United States jurisdiction (which is not affiliated directly or indirectly with an individual of Cuban descent) to deliver a direct equity investment to and authorizing direct financing for an officially registered privately-owned company (in the service sector) located in the Republic of Cuba and owned by a Republic of Cuba national. Neither entity in the transaction is connected with the other in terms of commercial relationships or family relationships. The parties did not have connectivity prior to this transaction. 

The license application was submitted to the OFAC on 10 June 2021 by Mr. Robert L. Muse, Esq., a Washington DC-based attorney (Telephone: 202-460-3168; Email: robertmuse@robertmuse.com), and the license was issued by the OFAC in the late afternoon of 10 May 2022. The U.S.-Cuba Trade and Economic Council assisted the parties during the process.

The eleven-month OFAC licensing process resembles the “anticipation” when pouring from a Heinz ketchup container. Eleven months to the day from when the license application was submitted to the OFAC, the ketchup poured from the container….

LINKS To Related Analyses 

U.S. Assistant Secretary Of State Telegraphs No Invitations For Cuba, Nicaragua, Venezuela To Summit Of The Americas Despite Importance Of Those Countries To Migration Issues Facing United States.  April 16, 2022 

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.  April 06, 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.  April 03, 2022 

Not Yet… “Cuba Policy Review” 365 Days Since Announcement. Is The Biden-Harris Administration Committed To Entrepreneurs, Self-Employed, MSME’s In Cuba? No- All Words. No Action.  January 27, 2022 

"Ninth Summit of the Americas" Scheduled For 6 June 2022 To 10 June 2022 In Los Angeles, California. Cuba And Venezuela Should Be Invited- And Both Countries Should Participate.  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 

BIS "Returned Without Action" License Application To Donate EV Chargers To U.S. Embassy In Havana Because "Ultimate Consignee" Cancelled Transaction.  March 07, 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 

Might Cuba And Venezuela Participate In 2021 Summit Of The Americas? Might They Be Required To Participate?  October 31, 2020 

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 

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

The Destruction Of The Hotel Saratoga In Havana Represents .13% Of Cuba's 71,000 Hotel Rooms. Of Concern Now Is What Insurance Companies Will Require For Visitors And Hotel Management Companies.

The loss in hotel rooms resulting from a natural gas-inspired explosion on 6 May 2022 which destroyed the 96-room four-star Hotel Saratoga in the city of Havana, Republic of Cuba, represents .13% of the Republic of Cuba’s approximately 71,000 hotel rooms.  

From an available inventory perspective, the reduction is inconsequential as the overwhelming majority of visitors to the Republic of Cuba are low-to-mid-market tourists who visit one-star to three-star all-inclusive beachfront resorts located outside of Havana- and do not visit Havana as a part of their holiday package.   

The Republic of Cuba is not yet a destination for luxury tourism where self-defined or Republic of Cuba government-defined five-star properties located in the Republic of Cuba are comparable with five-star properties located throughout Caribbean Sea-area countries and in other countries. For example, the Atlanta, Georgia-based Forbes Travel Guide has not dispatched a rating team to the Republic of Cuba to review the 246-room Gran Hotel Manzana Kempinski La Habana, the 250-room SO/Paseo del Prado La Habana, or the Hotel Saratoga prior to the explosion. 

For the government of the Republic of Cuba, most concerning will be the immediate and highly visible resurrection of concerns by visitors (and residents) about the fragility of the energy grid (electric, gas, water, sewer, communications, etc.) servicing not only Havana, but areas throughout the 800-mile-long archipelago which is home to 11.3 million citizens. The energy grid is owned and operated by Republic of Cuba government-controlled entities and remains in a consistent state of disrepair although efforts remain towards updating production, transmission, and delivery elements and to transition portions of the energy grid to renewable sources.  

Mitigating the concern of the government of the Republic of Cuba somewhat is far fewer visitors to the Republic of Cuba in 2020, 2021, and thus far in 2022 due to primarily issues relating to the pandemic COVID-19 which began in January 2020 and more recently the impact of sanctions upon financial institutions and airlines in the Russian Federation which deprives the Republic of Cuba of opportunities to increase engagement with tourists from the Russian Federation.  And, due to changes since 2017 in United States travel-related regulations focusing upon the Republic of Cuba and impact upon travel by the pandemic COVID-19 have resulted in far fewer visitors (not for the purpose of tourism which is prohibited by United States law) including those of Cuban descent visiting family and friends have arrived in the Republic of Cuba. 

• Companies providing insurance for properties (and for the non-Republic of Cuba-based management companies operating those properties) located in the Republic of Cuba may review the coverage and conditions of the policies they issue. Republic of Cuba government-operated companies may be required to revise insurance policies impacting guests and customers to hotels, restaurants, retail stores, and for apartment buildings whose tenants include non-Republic of Cuba nationals, including diplomats.  

• Companies providing travel insurance for visitors may review the conditions of the policies they issue. 

The deaths on 6 May 2022 of three individuals subject to United States jurisdiction at the Sandals Emerald Bay resort in Great Exuma, Bahamas, an all-inclusive property, will also impact maintenance discussions about properties in the Republic of Cuba. Likely hotel management companies will commence- and be required to commence by tour operators and travel agents and guests, thorough (and expensive) testing of all air conditioning systems, ventilation systems, and natural gas piping.

From Hotel Saratoga  

The Hotel Saratoga is owned and operated by Republic of Cuba government-operated Grupo de Turismo Gaviota SA, which is under Grupo de Administracion Empresarial S.A. (GAESA), which is under the Revolutionary Armed Forces (FAR) of the Republic of Cuba. 

“The long awaited refurbishment of Hotel Saratoga was finally completed with the hotel opening its doors to guests in December 2005. The Hotel is situated just inside the historical centre of the electric and sensual city of Havana.  The Saratoga was one of Havana’s most stylish establishments of its time. Notorious since the 1930’s as a favorite haunt of artists and socialites from all over the world, for its superb cuisine, the open air entertainments held in its pavement arcade, and the concerts given there by such renowned musicians as the Anacaona Orchestra.  The nowadays Saratoga has been recreated behind the original façade. It combines exquisite style and sense of place as well as state of the art technology. The Saratoga has all the amenities one would wish for in an exclusive city center hotel, including a stunning rooftop pool. The hotel has 96 rooms including 7 suites and various junior suites, and is managed to an international 5-star standard.  The Hotel Saratoga is Old Havana’s grandest hotel, having been carefully designed for especially discerning travelers who wish to combine cultural and historical exploration of the city with enjoyment of its world-famous…”

Cuba Increases By 5.2% In March 2022 Purchases Of U.S. Agricultural Commodities/Food Products. Total Up 12.8% Year-To-Year.

ECONOMIC EYE ON CUBA©
May 2022

March 2022 Food/Ag Exports To Cuba Increase 5.2%- 1
54th Of 217 March 2022 U.S. Food/Ag Export Markets- 2
2022 Exports Increase 12.8%- 2
Cuba Ranked 55th Of U.S. Ag/Food Export Markets- 2
March 2022 Healthcare Product Exports US$00.00- 2
March 2022 Humanitarian Donations US$784,086.00- 3
Obama Administration Initiatives Exports Continue- 3
U.S. Port Export Data- 16

MARCH 2022 FOOD/AG EXPORTS TO CUBA INCREASE 5.2%- Exports of food products and agricultural commodities from the United States to the Republic of Cuba in March 2022 were US$29,929,536.00 compared to US$28,442,805.00 in March 2021 and US$16,278,071.00 in March 2020.

March 2022 Exports Included: Chicken Leg Quarters (Frozen); Chicken Meat (Frozen); Chicken Legs (Frozen); Woodpulp; Rice; Green Coffee Beans; Roasted Coffee Beans; Condensed Milk; Communion Wafers; Paper For Photographs.

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

Impacting Flights To/From Cuba: American Airlines Increases Third Bag Fee From US$150.00 To US$200.00

Only 2 checked bags with a maximum weight of 70 lbs / 32 kgs each plus 1 carry-on bag and 1 personal item are allowed per passenger traveling to Cuba with no exceptions.

Bag limitations

One-way to Cuba

Trips originating outside Cuba traveling to Cuba, pay the applicable bag fees.
Round-trip to Cuba

Round-trips originating outside Cuba traveling to Cuba:
For travel to Cuba, pay the applicable bag fees

When departing from Cuba, 1st and 2nd standard-sized bags are free
One-way from Cuba

Trips originating in Cuba, 1st and 2nd standard-sized bags are free

Round-trip from Cuba

Round-trips originating in Cuba:
When departing from Cuba, 1st and 2nd standard-sized bags are free
When returning to Cuba, 1st standard-sized bag is free

Bag 1 is US$0.00/US$30.00
Bag 2 is US$0.00/US$200.00**
Bag 3 is US$200.00#
Bag 4 is US$200.00

** For travel to Cuba, a $40 2nd bag fee applies for tickets issued on / before May 11, 2021, a $65 2nd bag fee applies for tickets issued on / after May 12, 2021, and a $200 2nd bag fee applies for tickets issued on / after April 26, 2022 and travel on / after May 26, 2022.

# For travel to / from Mexico, Caribbean, Central America, and South America, the 3rd bag fee of $150 applies for tickets issued on / before May 11, 2021. For tickets issued on / after May 12, 2021, the 3rd bag fee of $200 applies.

LINK To American Airlines Policy Statement

Vice President Harris Meets Virtually With 15 Of 16 Leaders Of Caribbean-Sea Area Countries. Guess Who Was Missing? Largest By Land; Second-Largest By Population.

The White House
Washington DC
29 April 2022

Readout of Vice President Harris’s Meeting with Caribbean Leaders

Vice President Kamala Harris met virtually today with 15 leaders representing Caribbean nations and underscored the importance the Biden-Harris Administration places on our partnerships throughout the Caribbean. The Vice President made clear the United States is committed to work with our Caribbean neighbors to advance cooperation on economic recovery, the climate crisis, and security, among other areas of mutual concern. As part of the Administration’s commitment to continued engagement within the Caribbean, the Vice President proposed an annual meeting of this group to continue high-level discussions. The Vice President discussed economic recovery following the COVID-19 pandemic and reaffirmed that equitable economic growth in the Caribbean is a priority. As the United States is the region’s largest economic partner, the Vice President and the leaders discussed ways to further facilitate trade and attract U.S. investment. On security, the Vice President informed the leaders that the United States will expand our assistance to the Caribbean through the Caribbean Basin Security Initiative (CBSI). The Vice President discussed new funding to combat firearms trafficking, enhance maritime security, and support training for police and others. The Vice President and the leaders discussed cooperation to address the climate crisis and the transition to clean energy. They discussed ways to strengthen energy security, increase the deployment of clean energy, and enhance resilience and adaptive capacity to withstand the impacts of climate change and extreme weather events. The Vice President welcomed the input from the leaders on these areas, and they agreed our governments will stay in close touch, including at the upcoming Summit of the Americas in Los Angeles. The Leaders that participated:

Prime Minister Gaston Browne of Antigua and Barbuda
Prime Minister Phillip Davis of The Bahamas
Prime Minister Mia Mottley of Barbados
Prime Minister Juan Briceño of Belize
Prime Minister Roosevelt Skerrit of Dominica
President Luis Abinader of the Dominican Republic
Prime Minister Dr. Keith Mitchell of Grenada
President Dr. Irfaan Ali of Guyana
Prime Minister Ariel Henry of Haiti
Prime Minister Andrew Holness of Jamaica
Prime Minister Phillip Pierre of Saint Lucia
Prime Minister Dr. Timothy Harris of Saint Kitts and Nevis
Prime Minister Dr. Ralph Gonsalves of Saint Vincent and the Grenadines
Prime Minister Chan Santokhi of Suriname
Prime Minister Dr. Keith Rowley of Trinidad and Tobago
Secretary General of CARICOM Dr. Carla Barnett

Countries in Caribbean Population Estimates (2020): Haiti 11,402,528 Cuba 11,326,616 Dominican Republic10,847,910 Jamaica 2,961,167 Puerto Rico 2,860,853 Trinidad and Tobago 1,399,488 Guadeloupe 400,124 Bahamas393,244 Martinique 375,265 Barbados 287,375 Saint Lucia183,627 Curaçao 164,093 Grenada112,523 Saint Vincent and the Grenadines 110,940 Aruba 106,766 United States Virgin Islands 104,425 Antigua and Barbuda 97,929 Dominica 71,986 Cayman Islands 65,722 Saint Kitts and Nevis 53,199 Sint Maarten 42,876 Turks and Caicos Islands 38,717 Saint Martin 38,666 British Virgin Islands 30,231 Caribbean Netherlands 26,223 Anguilla 15,003 Saint Barthélemy 9,877 Montserrat 4,992.

Link To Related Analysis

Owners Of MSME’s In Cuba Should Be Invited To Participate In The June 2022 Summit Of The Americas In Los Angeles. So Should Representatives Of The Government Of Cuba. Apr 28, 2022

Cuba Wants US$1 Trillion In Reparations From United States. Claimants Seek US$1.9 Billion For Assets Expropriated After 1959 Revolution. Cuba's Court Filings Indicate Unwillingness To Pay Anything.

During the Obama-Biden Administration (2009-2017), its first official bilaterial discussion (not negotiation) about the 5,913 claims certified by the United States Foreign Claims Settlement Commission and valued at US$1.9 billion against the government of the Republic of Cuba was held on 8 December 2015- nearly one year after United States President Barack Obama began his 2,283-word statement with “Today, the United States of America is changing its relationship with the people of Cuba.” 

During that meeting, according to the Ministry of Foreign Affairs of the Republic of Cuba, "[the government of the Republic of Cuba] delegation explained the basis of their claims, particularly, the demands of the Cubans to the US government for human and economic damages, acknowledged by the Cuban courts." 

There are 8,821 claims of which 5,913 awards valued at US$1,902,202,284.95 were certified by the United States Foreign Claims Settlement Commission (USFCSC) and have not been resolved for nearing sixty years (some assets were officially confiscated in the 1960’s, some in the 1970’s and some in the 1990’s).   

During the entirety of the Obama-Biden Administration’s two terms there was never a seriously calibrated, consistent, and conditional effort to negotiate a settlement for the certified claims.   

From 2015 to 2017, however, more than 150 officials of the Obama-Biden Administration visited the Republic of Cuba.  Absent from each of those visits were reported official negotiations, not discussions, specifically related to the certified claims. 

The Obama-Biden Administration had both self-created opportunity and responsibility of office to negotiate a settlement for the certified claimants.  By not linking other areas of re-engagement and engagement with settlement of the certified claims, the Obama-Biden Administration colluded with the [Raul] Castro-Machado Administration (2008-2018); acquiescing to an agenda designed in Havana rather than the agenda that should have been important to Washington.  The Trump-Pence Administration (2017-2021) also had an obligation on behalf of the certified claimants to officially request from the Diaz-Canel-Valdes Mesa Administration (2018- ) a direct negotiation process.  It did not. 

The government of the Republic of Cuba has continued to reiterate that prior to a re-normalized bilateral relationship with the United States, among items on its list are: reparations for damages inflicted since 1960 by United States laws, regulations and policies; and removal of the United States naval base at Guantanamo Bay. 

The reparations value reported by the government of the Republic of Cuba has ranged from US$100 billion to US$121 billion to US$800 billion to US$930 billion to US$1 trillion. 

“Havana, Apr 25, 2022 (Prensa Latina News Agency): The damages caused by the United States to Cuba for more than 60 years of economic, commercial and financial blockade amount to 150 billion dollars, Foreign Minister Bruno Rodriguez said on Monday.  At a press conference, the foreign minister explained that such losses amount to almost one trillion dollars when the depreciation of the dollar against the value of gold in the international market is taken into account.  That is more than 12 million dollars a day and more than 365 million dollars a month to the detriment of a small and underdeveloped economy like Cuba’s, he stressed.  Rodriguez said that this has an impact on families and is one of the causes of emigration from Cuba, fundamentally economic.  The head of Cuban diplomacy also criticized the selective and discriminatory migration policy that the United States implements on Cubans.  Washington bans travel, cuts off channels for regular and orderly emigration and fails to comply with agreements by which it committed itself to granting no fewer than 20,000 immigrant visas to Cuban citizens, Rodriguez remarked.” 

LINK To Related Post: Does Cuba Have Intention Under Any Circumstances To Compensate Certified Claimants? Court Arguments Suggest It Does Not, Will Not, No Matter What.  June 24, 2020 

Certified Claims Background 

There are 8,821 claims of which 5,913 awards valued at US$1,902,202,284.95 were certified by the United States Foreign Claims Settlement Commission (USFCSC) and have not been resolved for nearing sixty years (some assets were officially confiscated in the 1960’s, some in the 1970’s and some in the 1990’s).   

The USFCSC permitted simple interest (not compound interest) of 6% per annum (approximately US$114,132,137.10); with the approximate current value of the 5,913 certified claims is approximately US$8,750,130,510.77.  The first asset (along with 382 enterprises the same day) to be expropriated by the Republic of Cuba was an oil refinery on 6 August 1960 owned by White Plains, New York-based Texaco, Inc., now a subsidiary of San Ramon, California-based Chevron Corporation (USFCSC: CU-1331/CU-1332/CU-1333 valued at US$56,196,422.73).  From the certified claim filed by Texaco: “The Cuban corporation was intervened on June 29, 1960, pursuant to Resolution 188 of June 28, 1960, under Law 635 of 1959.  Resolution 188 was promulgated by the Government of Cuba when the Cuban corporation assertedly refused to refine certain crude oil as assertedly provided under a 1938 law pertaining to combustible materials.  Subsequently, this Cuban firm was listed as nationalized in Resolution 19 of August 6, 1960, pursuant to Cuban Law 851.  The Commission finds, however, that the Cuban corporation was effectively intervened within the meaning of Title V of the Act by the Government of Cuba on June 29, 1960.”   

The largest certified claim (Cuban Electric Company) valued at US$267,568,413.62 is controlled by Boca Raton, Florida-based Office Depot, Inc.  The second-largest certified claim (International Telephone and Telegraph Co, ITT as Trustee, Starwood Hotels & Resorts Worldwide, Inc.) valued at US$181,808,794.14 is controlled by Bethesda, Maryland-based Marriott International; the certified claim also includes land adjacent to the Jose Marti International Airport in Havana, Republic of Cuba.  The third-largest certified claim valued at US$97,373,414.72 is controlled by New York, New York-based North American Sugar Industries, Inc.  The smallest certified claim is by Sara W. Fishman in the amount of US$1.00 with reference to the Cuban-Venezuelan Oil Voting Trust.   

The two (2) largest certified claims total US$449,377,207.76, representing 24% of the total value of the certified claims.  Thirty (30) certified claimants hold 56% of the total value of the certified claims.  This concentration of value creates an efficient pathway towards a settlement. 

Owners Of MSME’s In Cuba Should Be Invited To Participate In The June 2022 Summit Of The Americas In Los Angeles. So Should Representatives Of The Government Of Cuba.

The United States will host the Ninth Summit of the Americas in Los Angeles, California in June 2022 with a focus on “Building a Sustainable, Resilient, and Equitable Future” for our hemisphere. [6 June 2022 to 10 June 2022 with the Los Angeles Convention Center the primary venue.] 

Diplomatic malpractice for the Biden-Harris Administration (2021- ) not to include the government representatives of those countries which have been identified previously as materially integrated into issues of migration impacting Brasil, Colombia, and the United States.  Excluding representatives of those governments with whom there are disagreements with the United States relating to commercial, economic, and political issues is not a demonstration of Washington strength- it is a demonstration of Washington weakness. 

The owners of micro, small, and medium-sized enterprises (MSMEs) in the Republic of Cuba should be invited to participate in gatherings integrated into the Summit of the Americas.  A useful opportunity for the MSMEs to discuss and to seek direct investment and direct financing for their businesses and to advocate for the full implementation of direct correspondent banking to make more efficient, transparent, and cost-effective the movement of funds from the United States to the Republic of Cuba and from the Republic of Cuba to the United States.

Will the Summit of the Americas be another missed opportunity for the Biden-Harris Administration to direct the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury to authorize individuals subject to United States jurisdiction to deliver direct investment to and deliver direct finance for MSME’s in the Republic of Cuba?   

There are three issues which impact the participation by the owners of MSMEs at the Summit of the Americas: 

• First, if representatives of the government of the Republic of Cuba are excluded from the Summit of the Americas, participating representatives MSMEs could be portrayed negatively by the government of the Republic of Cuba as having participated in and be supportive of a United States Government-sponsored event- and there could be repercussions for their businesses. Might their ability to return to the Republic of Cuba be impacted? 

• Second, if owners of MSMEs apply for visas at the United States Consulate in Havana, Republic of Cuba, what assurance will they have that the National Security Council (NSC) at The White House will not direct the United States Department of State to reverse the visa application process if there is criticism from members of the United States Congress or from officials in the State of Florida?  As witnessed after the Biden-Harris Administration sent a delegation to Venezuela, subsequent political criticism will be met with acquiescence rather than commitment.   

• Third, neither the MSMEs nor their sponsors, if any are involved, will want to commit to and then make required often non-refundable payments for roundtrip airline tickets and hotel reservations knowing that visas may not be issued well in advance of travel or issued at all. 

WASHINGTON, April 27, 2022 (Reuters) (excerpts) - Cuba, Nicaragua and Venezuelan President Nicolas Maduro's government are likely to be excluded from the U.S.-hosted Summit of the Americas to be held in June in Los Angeles, a senior State Department official said on Wednesday.  "They are unlikely to be there," U.S. Assistant Secretary of State Brian Nichols told a small group of reporters, saying the summit of regional leaders would focus on the Western Hemisphere's democracies.  Cuba participated in the 2015 summit in Panama and the 2018 gathering in Peru. Maduro was excluded in 2018 due to regional censure of his democratic record.  Nichols said at least 27 countries were expected at the June 6-10 summit, held every three or four years since 1994.  Regional heads of state and government normally attend, and Nichols signaled that was expected this time, saying while invitations had not yet gone out he had seen a strong desire to participate. 

United States Department of State
Washington DC
15 April 2022

Assistant Secretary for Western Hemisphere Affairs Brian A. Nichols and Population, Refugees, and Migration Acting Principal Deputy Assistant Secretary Marta Youth On Secretary Blinken’s Upcoming Travel to Panama- Via Teleconference (Excerpts) 

QUESTION: Thank you. You have mentioned a couple of times that this meeting in Panama is in preparation for the Summit of the Americas. So I was wondering if the United States has invited Cuba and Venezuela to the Summit of the Americas. Thank you. 

ASSISTANT SECRETARY NICHOLS: So the White House will determine which leaders are invited to the Summit of the Americas, and the White House has not yet issued invitations. I will note that the Western Hemisphere is a part of the world that has a broad commitment to democracy, as enshrined in the Inter-American Democratic Charter. And I believe that as we move forward, we will see countries that share that commitment toward democracy as the key participants in the summit. 

LINKS To Related Analyses 

U.S. Assistant Secretary Of State Telegraphs No Invitations For Cuba, Nicaragua, Venezuela To Summit Of The Americas Despite Importance Of Those Countries To Migration Issues Facing United States.  April 16, 2022 

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.  April 06, 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.  April 03, 2022 

Not Yet… “Cuba Policy Review” 365 Days Since Announcement. Is The Biden-Harris Administration Committed To Entrepreneurs, Self-Employed, MSME’s In Cuba? No- All Words. No Action.  January 27, 2022 

"Ninth Summit of the Americas" Scheduled For 6 June 2022 To 10 June 2022 In Los Angeles, California. Cuba And Venezuela Should Be Invited- And Both Countries Should Participate.  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 

BIS "Returned Without Action" License Application To Donate EV Chargers To U.S. Embassy In Havana Because "Ultimate Consignee" Cancelled Transaction.  March 07, 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 

Might Cuba And Venezuela Participate In 2021 Summit Of The Americas? Might They Be Required To Participate?  October 31, 2020 

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 

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

Central Bank Of Cuba Readies For Virtual Asset Service Providers (VASPs). Further Moving Country Into The Cryptocurrency Universe

Ethereum World News
New York, New York
27 April 2022

Digital asset companies can now operate legally within Cuba thanks to a new directive
The country’s central bank will issue one-year business licenses to eligible virtual asset service providers
Licenses are now mandatory
Crypto companies cannot cease doing business after obtaining a license without permission from the apex bank
The policy will come into effect on May 16, 2022

According to a state document dubbed the Official Gazette 43, the Central Bank of Cuba has unveiled its plan to issue operational licenses to qualified virtual asset service providers (VASPs). The statement released on Tuesday (April 26, 2022), said that the business licenses are valid for 12 months. Cuba’s top bank will also allow an option to extend this timeframe. An excerpt from the report reads: Virtual asset service provider licenses are approved for a one-year period, extendable for a second year, given the experimental and novel nature of this type of activity.

Banco Central de Cuba (BCC) hopes the new policy will bolster the country’s existing digital economy while encouraging new players to set up shop within the country. Furthermore, it’s possible that the law could serve as a tool to mitigate years of sanctions imposed by the US government.

Since these sanctions restricted heavyweight payment giants like PayPal from servicing Cubans, citizens have increasingly turned to decentralized transaction portals and vehicles like Bitcoin and crypto, per data from a 2020 Google Trends report. However, the latest licensing framework is also supposedly geared towards establishing oversight for the burgeoning crypto industry and ensuring that companies comply with established financial policies and practices. BCC also said that several factors will determine if a company is issued a license or not. he Central Bank of Cuba, when considering the license request, evaluates the legality, opportunity and socioeconomic interest of the initiative, the characteristics of the project, the responsibility of the applicants, and their experience in the activity. In addition, VASPs are prohibited from shutting down operations without notice after receiving a license from Cuba’s apex bank. Crypto businesses must obtain permission from the BCC if they wish to withdraw their offering, per the announcement. Finally, the Gazette document disclosed that the country will implement the BCC’s latest policy 20 days after the announcement. This puts the date for implementation at May 16, 2022.

U.S. And Cuba Outline Migration Discussions- They Were Not Pleasant...

United States Department of State
Washington DC
21 April 2022
Press Briefing

QUESTION: On two – on the two other ones, and this is going to be very brief, I’m just wondering if you can tell us anything about the migration talks with the Cubans today, and then secondly if there’s any update on this delegation visiting the Solomon Islands.

MR PRICE: Sure. So first on the migration talks that we’ve announced with the Cubans, these provide an opportunity for discussion of migration issues between Cuba and the United States. They represent a continuation of our nearly 30-year engagement with Cuba on migration matters as neighboring countries, as neighbor states. We do maintain, as you know, diplomatic relations and discussions on safe, orderly, and legal migration. That remains a primary U.S. interest. It’s the precise reason why we are having these discussions with the Cubans as well as with other partners in the hemisphere. And based on U.S. interests and our support for family reunification for the Cuban people, we did resume these migration talks between the United States and Cuba. They started this morning. They’re occurring over the course of the day today. We have seen – and this, I think, underscores the imperative of undertaking these talks – we’ve seen a significant increase in irregular migration on the part of Cuban migrants coming to the United States. That includes both via overland routes and maritime routes. These talks have been longstanding. They’ve evolved since they were first taken on in 1984. They have since become a biannual occurrence, following the signing of an accord in 1994 and 1995. The talks, of course, have been paused in recent years. They had not occurred since 2018, but they had occurred consistently across administrations since 1995. They do provide an opportunity for important discussions on mutual compliance with migration accords and the commitment of the United States and Cuba to safe, legal, and orderly migration, and that’s the interest of ours, is ensuring safe, legal, orderly migration between Cuba and the United States is consistent with our interest in fostering family reunification and the promotion of greater respect for freedom and human rights in Cuba. Topics for the talks have included well-established mechanisms to address irregular migration and compliance with U.S. immigration law, migration via both land and sea, migration trends, returns and repatriations of citizens, embassy functions, and other related issues. I understand that we’ll have a little bit more to offer upon conclusion of the talks today.

QUESTION: Is it safe to say that you would like to see a reduction in the significant increase in irregular migration that you’ve seen coming from the Cubans? Is that part of what’s being discussed?

MR PRICE: It is safe to say that we would like to see a process that is safe, orderly, and legal, and not one that is dominated by irregular migrants seeking to make a dangerous either overland journey or maritime journey to the United States.

QUESTION: You mentioned that the talks this week, or the talks today are focused on migration narrowly. But as these are the highest-level talks under this administration, do you plan to raise any other issues, if it’s human rights, et cetera, things that have – you’ve voiced concern about before? And could these lead potentially to anything else, to any broader dialogue or developments with Cuba?

MR PRICE: Well, these talks are focused squarely on migration. And again, the topic of these talks are migration trends, irregular migration, returns and repatriations of citizens, embassy functions and related issues. The goal of the talks is to promote safe, orderly, and legal migration between our two countries. Now, of course, our broader policy is predicated on support for the Cuban people, support for their democratic aspirations. There is a migration element of that. There is a family reunification element of that. But these talks are migration talks.

QUESTION: Yes. Going back to the Cuba talks, we understand that – and we spoke earlier in the week with Border Patrol Chief Raul Ortiz. He mentioned that Cubans represent currently the third-largest group of migrants being apprehended at the border. I was going to ask you if someone – a representative from the Department of Homeland Security has participated in these talks today.

MR PRICE: So the U.S. delegation is being led by our deputy assistant secretary for Western Hemisphere Affairs. That’s Emily Mendrala. The State Department will have representatives from our Consular Affairs Bureau, our Bureau of Population, Refugees, and Migration, and the chargé d’affaires from our embassy in Havana. And representatives from DHS will also join.

United States Department of State
Washington DC
21 April 2022

Migration Talks with the Government of Cuba- Office of the Spokesperson

On April 21, U.S. and Cuban officials met in Washington, D.C. to discuss the implementation of the U.S.-Cuba Migration Accords. These bilateral discussions on migration are generally held semiannually, reflecting a commitment by both countries to regularly review the implementation of the Accords. Deputy Assistant Secretary for Western Hemisphere Affairs Emily Mendrala led the U.S. interagency delegation, and Cuba’s Vice Foreign Minister Carlos Fernandez de Cossio led the Cuban delegation. These migration talks provide an opportunity for discussions on mutual implementation of the Migration Accords (comprised of a series of bilateral agreements between the United States and Cuba done in 1984, 1994, 1995, and 2017). The U.S. delegation highlighted areas of successful cooperation on migration, while also identifying issues that have been obstacles to fulfilling the goals of the Accords. Engaging in these talks underscores our commitment to pursuing constructive discussions with the Government of Cuba where appropriate to advance U.S. interests. These discussions represent the first Migration Accord talks between the United States and Cuba since 2018. The United States also addressed consular services at U.S. Embassy Havana, to include resumption of immigrant visa services on a limited basis starting in May, current American citizen services, and current issuance of emergency non-immigrant visas. Enabling safe, legal, and orderly migration between Cuba and the United States remains a mutual interest between the United States and Cuba and is consistent with U.S. interests in fostering family reunification and promoting greater respect for human rights and fundamental freedoms in Cuba.

Ministry of Foreign Affairs
Havana, Republic of Cuba
21 April 2022

Cuba and the United States hold round of migration talks in Washington D.C.

Migration talks between Cuba and the United States were held in Washington D.C. on April 21, 2022. The delegations were presided over by Carlos Fernández de Cossío, Deputy Foreign Minister, and Emily Mendrala, Deputy Assistance Secretary in the Bureau of Western Hemisphere Affairs respectively. Both delegations reviewed compliance with the Bilateral Migration Accords as well as the mutual commitment to ensure a regular, safe and orderly migration. Cuba reiterated its concern over the measures adopted by the US government which encourage migration, prevent a legal and orderly migration and create social and economic conditions that incentivize emigration. Cuba likewise emphasized that these measures, including those associated to the extreme tightening of the economic blockade, are leading to the loss of human lives and the commission of crimes such as illicit alien smuggling, migration fraud and traffic in persons, which affect both countries and the region. The Cuban delegation insisted on the obligation of the US government to guarantee the issuance in Havana of no less than 20,000 visas per year for those Cubans willing to migrate to the United States, a commitment that has not been complied with since 2017. The Cuban delegation likewise emphasized that there is no reason whatsoever that could justify the continued interruption of that service in Cuba, thus forcing potential migrants to travel to Guyana to have their travel applications processed. The Cuban delegation also reiterated that the United States should stop hindering and violating the rights of Cubans to travel to third countries of the region and called for the comprehensive and non-selective compliance with the Bilateral Migration Accords. (Cubaminrex)

OFAC Requesting Comments On Five-Year Record Keeping Requirement For Travel To Cuba: 5,800 Hours For Approximately 35,000 "unique record-keepers" Per Year

AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Notice and request for comments.
SUMMARY: The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to comment on proposed or continuing information collections, as required by the Paperwork Reduction Act of 1995. Currently, the Office of Foreign Assets Control (OFAC) within the Department of the Treasury is soliciting comments concerning OFAC's information collection requirements for persons providing authorized travel or carrier services related to Cuba, which are contained within the Cuban Assets Control Regulations.
DATES: Written comments must be submitted on or before June 21, 2022 to be assured of consideration.
ADDRESSES: You may submit comments by either of the following methods: Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions on the website for submitting comments. Email: OFACreport@treasury.gov with Attn: Request for Comments (Cuban Travel and Carrier Services).
Instructions: All submissions received must include the agency name and refer to Docket Number OFAC-2022-0001 and the Office of Management and Budget (OMB) control number 1505-0168. Comments received will be made available to the public via https://www.regulations.gov or upon request, without change and including any personal information provided.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for Licensing, 202-622-2480; Assistant Director for Regulatory Affairs, 202-622-4855; or Assistant Director for Sanctions Compliance & Evaluation, 202-622-2490.
SUPPLEMENTARY INFORMATION: Title: Persons Providing Travel and Carrier Services to Cuba.
OMB Number: 1505-0168.
Type of Review: Extension without change of a currently approved collection.
Description: Requirements to retain records are codified in § 515.572(b) of the Cuban Assets Control Regulations, 31 CFR part 515 (the “Regulations”). Persons subject to U.S. jurisdiction who provide authorized travel or carrier services related to Cuba are required to maintain for at least five years from the date of the transaction a certification from each customer indicating the name and address of each customer and the section of the Regulations (in the case of generally licensed travel), or the specific license number, that authorizes the person to travel to Cuba. The records covered by this information collection must be provided on request to the U.S. Department of the Treasury and will be used to monitor compliance with regulations governing persons subject to U.S. jurisdiction, including travel agents, airlines and vessel operators, providing authorized travel and carrier services with respect to Cuba and persons who travel to Cuba.
Forms: Section 515.572(b)(1) does not specify any particular form of recordkeeping.
Affected Public: Individuals, households, travel and carrier businesses, other for-profit businesses, non-governmental organizations. The likely respondents and record-keepers affected by this collection of information are U.S. travel and carrier businesses.
Estimated Number of Respondents: OFAC estimates, based on multiple sources including data received from the U.S. Department of Homeland Security, U.S. Customs and Border Protection, and information collected by OFAC, that the number of unique record-keepers is approximately 35,000 per year. OFAC believes the significant decline in the number of unique respondents over the past three years is largely due to a change in methodology, including improved data, as well as to other factors discussed below. Pursuant to this methodology, OFAC has identified a smaller number of travel service providers but a larger number of records per respondent. OFAC believes that the decline in the number of unique respondents can also be attributed to the following: (1) An overall decline in travel worldwide due to the Coronavirus Disease 2019 (COVID-19) pandemic; (2) OFAC's elimination of the group people-to-people educational travel authorization in June 2019; and (3) amendments to the Department of Commerce's Bureau of Industry and Security's regulations that restrict the temporary sojourn of aircraft and vessels to Cuba, also in June 2019. OFAC assesses that the number of annual trips will likely slowly increase over the coming three years if travel restrictions due to the COVID-19 pandemic continue to ease, although there is some uncertainty due to the ongoing pandemic.
Estimated Number of Records per Respondent: Based on newly acquired data and OFAC's revised methodology, the estimated number of records is approximately 10 per respondent. (Some recordkeepers may keep far more records and some far less; 10 is an average.)
Estimated Total Number of Annual Records: Based on additional data and OFAC's revised methodology, the estimated total number of annual records is approximately 350,000. OFAC has factored into our assessment a likely increase in travel between the United States and Cuba over the next three years as pandemic travel restrictions ease, but believes that numbers of travelers will not rise to levels present when a wider variety of types of travel to Cuba were generally licensed.
Estimated Time per Record: OFAC assesses that there is an average time estimate of 1 minute per record.
Estimated Total Annual Burden Hours: The estimated total annual reporting burden is approximately 5,800 hours.
Request for Comments: Comments submitted in response to this notice will be summarized and included in OFAC's request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information has practical utility; (b) the accuracy of the agency's estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services required to provide information.
Authority: 44 U.S.C. 3501 et seq.

Andrea M. Gacki, Director, Office of Foreign Assets Control.
[FR Doc. 2022-08657 Filed 4-21-22; 8:45 am]
BILLING CODE 4810-AL-P

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