U.S. Department Of Transportation Re-Authorizes Commercial Airlines To Service Nine Airports In Cuba

“By this Order, the U.S. Department of Transportation (the Department or DOT), acting at the request of the Department of State, revokes previous actions restricting certain air services between the United States and Cuba.”

“By letter dated May 31, 2022, Secretary of State Antony J. Blinken wrote to Secretary of Transportation Pete Buttigieg, stating: Consistent with Administration measures announced May 16 in support of the Cuban people, and in the foreign policy interests of the United States, I respectfully request the Department of Transportation terminate all civil aviation restrictions on flights between the United States and Cuba implemented at the previous request of the U.S. Department of State in letters dated October 25, 2019; January 7, 2020; and August 13, 2020. Accordingly, the Department finds that it is in the public interest to revoke, effective immediately, the actions referenced above and set forth in the ordering paragraphs below.”

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

LINK To DOT Order

Virgin Atlantic Cancels Resumption Of Service To Cuba Due To "Unique Complexities Cuban Operations"; British Airways Does Not Service Cuba. Politics/Pandemic At Play?

Background: On 24 April 2022, London, United Kingdom-based Virgin Atlantic Airways reported that the company would again service Jose Marti International Airport (HAV) in Havana, Republic of Cuba, from 1 November 2022 with three flights per week (Tuesday, Friday, Sunday) using a Boeing 264-seat, three-class configutation 787-9 Dreamliner aircraft from London Heathrow (LHR). Hounslow, United Kingdom-based British Airways does not service the Republic of Cuba.

Network Update – 26 May 2022

As we emerge from the pandemic we’ve had to make careful decisions about our network, with regular review of our flying schedules. We’re disappointed to confirm that due to the unique complexities of Cuban operations, we have taken the difficult decision to withdraw our plans for London Heathrow – Havana services. Our services scheduled to commence from 30th October 2022, operating as a Winter-only service until 24 March 2023, will be cancelled.

We sincerely apologise for disrupting customers’ plans to visit this vibrant and much-loved leisure destination. In recent years Virgin Atlantic operated the UK’s only direct scheduled flights to Havana, working closely with valued partners in the UK and Cuba to support holidaymakers to discover this vibrant and much-loved leisure destination . We will keep options under review to return to this unique part of the Caribbean in the future. As it stands, we do not have plans to operate the service in Winter 2023.

We apologise for any inconvenience caused by these changes. Our flexible booking policy allows customers to amend their flights, should they wish, with no change fees, all the way until 31 December 2023. If any re-routing is not suitable, affected customers can also choose to request a refund.

Bookings affected by these changes were updated in your GDS on Saturday 28 May 2022. Please check here regularly for updates to travel restrictions and here for specific flight status. We will continue to keep you up to date with all the latest updates to schedule and travel restrictions, You can stay connected with Virgin Atlantic Partner Hub and sign up to be the first to hear from us. Please ensure the latest traveller contact information is available within the booking, so the latest instructions reach the traveller via SMS and email.

Sales Support

Where possible we would kindly request that you contact us using our Get in touch form and the team will continue to work hard to respond to your queries within 72 hours between Monday and Friday. Our Customer Centre are busy helping customers who have booked directly with Virgin Atlantic, and this means they are unable to respond to queries from our agency partners or our mutual customers.

For all other VSbulletin information, please visit Partner Hub.

For DL ticketed customers please contact UK Delta Sales Support on 0800 783 0747 or Email SalesSupport.uk@delta.com. For Delta’s up to date information please visit Delta Professional: pro.delta.co.uk

Response To A Washington Times Editorial From Those Criticized And On Behalf Of Those Criticized.

The Washington Times
Washington DC
25 May 2022

Biden’s easing of sanctions on Cuba helps a cruel regime hurt its people
The administration is falsely claiming it will benefit Cubans
By Editorial Board

Excerpt: “Second, the notion of entrepreneurs or independent contractors conducting business freely under the Cuban military dictatorship is a myth. No one on the island gets to conduct any business without regime approval or connections, which makes the notion of independent business ownership both a legal and factual impossibility.  On May 10 the U.S. issued a license from the Office of Foreign Assets Control permitting a U.S. company to finance a Cuban company — an act which almost certainly violates the Cuban Liberty and Democratic Solidarity Act of 1996, which outlawed U.S. 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 Washington Times Editorial Board delivers two accusations.   

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

• Second, the license issued “almost certainly violates” the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”)- and conveniently excludes precisely what is this 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 Washington Times 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 Washington Times, 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 Washington Times to pontificate from the comfort of their well-appointed 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 World Communications.  How many of those on the Editorial Board of The Washington Times have tried to create a business?  Created a business?  Managed a business? 

The Editorial Board of The Washington Times infers that 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 Washington Times infers 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 “almost certainly” 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 the 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 Washington Times 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 Washington Times 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.

Digesting What Changes To Cuba Policy Mean: Might Libertad Act Lawsuits Impede Or Benefit U.S. Travelers And Travel Providers?

Will Internet-Based Reservation Platforms Return Cuba To List Of Options While They Defend Themselves In Lawsuits?
US$6,800.00 May Protect Travelers; US$4.35 May Not Protect Travel Organizers
Title III Lawsuits Create New Compliance Focus?
“Stay At Our Hotel- We Settled With Owners”
Airbnb Needs To Be Proactive And Support Direct Correspondent Banking

On 16 May 2022, the Biden-Harris Administration (2021- ) announced it will reverse some of the Trump-Pence Administration (2017-2021) reversals of some of the Obama-Biden Administration (2009-2017) policies and regulations relating to commercial, economic, and political engagement with the government of the Republic of Cuba, with citizens of the Republic of Cuba, and with owners and managers of privately-owned companies in the Republic of Cuba.  The Biden-Harris Administration also announced new policies and regulations.   

Nine days since the announcement, neither the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and Bureau of Industry nor the Security (BIS) of the United States Department of Commerce have published new and revised regulations. 

An excerpt from the statement by United States Department of State (5/16/22): 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…. We will not remove entities from the Cuba Restricted List (https://www.state.gov/cuba-sanctions/cuba-restricted-list/). 

Senior Biden-Harris Administration Official (5/16/22): “So, I mean, what I'll say -- and I'll allow my colleague to weigh in on this -- is that, certainly, the senator’s [Robert Menendez (D- New Jersey] concerns about establishing the group people-to-people travel under general license opens the door to tourism.  We -- I think one thing to underscore is that the Treasury Department has the authority to audit groups that are organizing travel.  And we will ensure that that travel is purposeful and in accordance with U.S. law.”  

The retention of the Cuba Restricted List (CRL) maintained by the United States Department of State and the lawsuits filed since the 2 May 2019 implementation of Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”) will impact BOTH those who organize travel to the Republic of Cuba and those who travel to the Republic of Cuba.  The CRL has not been updated since 8 January 2021.  The CRL focuses upon entities controlled by or affiliated with the Revolutionary Armed Forces (FAR) of the Republic of Cuba. 

Many hotels in the CRL are in locations where people-to-people travel groups, group educational travelers, and individuals may find convenient, desirable, and necessary for their itineraries.  Many of the hotels in the CRL located in the Republic of Cuba are within the quality range acceptable to travelers and travel organizers subject to United States jurisdiction.   

Due to a constricted hotel room inventory, a primary beneficiary of the Biden-Harris Administration decisions will be properties listed on the www.airbnb.com platform.  In 2017, there were approximately 20,000 residences registered with Airbnb.  In 2020, there were approximately 35,000 residences registered with Airbnb. 

Republic of Cuba nationals who are owners and managers of properties listed on the Airbnb platform will directly benefit because of the constraints imposed by the CRL- a limited inventory of large properties which can accommodate people-to-people groups and educational travel groups.   

If, as expected, the government of the Republic of Cuba authorizes direct equity investment in and direct financing to micro, small, and medium-size enterprises (MSMEs), not unreasonable to expect that existing Airbnb-listed properties will upgrade and expand their portfolios- with many imports of products and supplies sourced from the State of Florida and delivered using the regularly-scheduled commercial flights from airports in Miami, Fort Lauderdale, and Tampa; and not surprising will be to learn about an enterprising Republic of Cuba national and an individual or entity located in the United States who will petition to construct a boutique hotel in the Republic of Cuba. 

LINK: 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 

The Trump-Pence Administration made operational Title III of the Libertad Act.  Title III authorizes lawsuits to be filed in United States District Courts against companies and individuals who are using a certified claim (5,913) or non-certified claim (unknown number) where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.  To date, 44 Lawsuits Filed (15 certified claimants & 29 non-certified claimants).  LINK 

The Libertad Act Title III lawsuits filed since 2 May 2019 are consequential:  90+ Law Firms; 262+ Attorneys; 65,000+ Filed Court Documents; US$24.5+ Million Law Firm Billable Hours (estimated 75% by defendants); 16 Countries Impacted; 121 Plaintiffs (some in multiple cases); 4 Class Action Requests; 82 Defendants (including corporate parent, subsidiaries; some sued in multiple lawsuits); 26 United States Defendants (not including subsidiaries); 15 Republic of Cuba Initial Defendants (eleven remaining); 31 Non-United States Defendants; 10 European Union-Based Defendants; and 5 Companies Notified As Potential Defendants. 

“For filing an action brought under Title III of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996, P.L. 104-114, 110 Stat. § 785 (1996), US$6,800.00. (This fee is in addition to the filing fee prescribed in 28 U.S.C. § 1914(a) for instituting any civil action other than a writ of habeas corpus.)”  The cost to send a one-ounce certified letter using the United States Postal Service (USPS) is US$4.35. 

The high cost for filing a Libertad Act Title III lawsuit in a United States District Court will protect individual travelers from becoming defendants.  Seeking restitution from an individual who spends two nights at a hotel which is located on expropriated property is not cost-effective.   

However, a travel organizer, particularly a large travel organizer who has meaningful revenue- and meaningful revenue from activities relating to the Republic of Cuba, may find that revenue stream an attractive magnet for a filing- and delivering the notice would cost a potential plaintiff US$4.35. 

Among defendants included in Title III lawsuits: Booking.com, Expedia.com, Hotels.com, Orbitz.com, Travelocity.com, Tripadvisor.com, Trivago.com along with hotel management companies Accor, Barcelo, Blue Diamond, Iberostar, Jolly, Melia, and NH Hotels.  Unknown if any of the defendant companies will again make available the same properties located in the Republic of Cuba that were included prior to the company becoming a defendant in a Libertad Act lawsuit.  

Because Title III lawsuits are in the public domain, widely reported and easily searchable, both those organizing travel and those traveling are charged with having knowledge of Libertad Act Title III claims which may impact their travel-related decisions.  There may be no “get of out of jail free card” by having the courage of one’s ignorance. 

A provision in the Libertad Act authorizes “private settlements” between those seeking to use an asset upon which there is a claim (certified and non-certified) and those who own the claim (certified and non-certified).  This avenue of protection may be an important tool for use in protecting an authorized traveler subject to United States jurisdiction who plans to visit the Republic of Cuba and the organizer of the travel.  

A traveler and an organizer may now be on notice to investigate and tasked to confirm in advance of arrival whether a hotel is on property where the structure and/or the property are defendants in an existing Title III lawsuit, might have a certified claim which is identifiable through the data base maintained by the Foreign Claims Settlement Commission within the United States Department of Justice, or might be subject to a non-certified claim. 

In July 1997, then-New York City, New York-based ITT Corporation and then-Amsterdam, the Netherlands-based STET International Netherlands N.V. signed an agreement whereby STET International Netherlands N.V. would pay approximately US$25 million to ITT Corporation for a ten-year right (after which the agreement could be renewed and was renewed) to use assets (telephone facilities and telephone equipment) within the Republic of Cuba upon which ITT Corporation has a certified claim valued at approximately US$130.8 million.  ETECSA, which is now wholly-owned by the government of the Republic of Cuba, was a joint venture controlled by the Ministry of Information and Communications of the Republic of Cuba within which Amsterdam, the Netherlands-based Telecom Italia International N.V. (formerly Stet International Netherlands N.V.), a subsidiary of Rome, Italy-based Telecom Italia S.p.A. was a shareholder.  Telecom Italia S.p.A., was at one time a subsidiary of Ivrea, Italy-based Olivetti S.p.A.  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 now controlled by Bethesda, Maryland-based Marriott International. 

You Can Stay If You Can Pay 

Some travel organizers might formalize an agreement with a claimant or group of claimants for use of some of the most visible and likely accessed locations. 

Plaintiffs in existing Libertad Act Title III lawsuits and others with certified claims and non-certified claims together could create an Internet portal where travel organizers could obtain an electronic pass key.  Input the location(s) to be visited in the Republic of Cuba and if there is a match with a claimant then the travel organizer can make a payment to the claimant using a credit card.  Then both the traveler and travel organizer would be protected from any legal exposure.  This would require certified claimants and non-certified claimants to collectively merge their interests- and undertaking requiring a meaningful investment of time and money. 

There might also be an opportunity for a hotel (including the owner and management company) in the Republic of Cuba which is subject to a Title III lawsuit or has not yet been listed as a defendant to seek a settlement or fixed-period abatement with a claimant.  A result could be the hotel then presenting itself as free of any Libertad Act exposure- which may be a marketing benefit.  There is an example of one such potential agreement, which did not come to fruition: 

On 12 March 2002, Meliá Hotels International reportedly offered US$5 million to the descendants of Mr. Rafael Lucas Sanchez Hill as payment for "trafficking" relating to the Sol Rio de Oro Hotel in response to enactment in 1996 of the Libertad Act.  On 26 March 2002, Sol Melia International, reportedly believing the [Bush-Cheney Administration (2001-2009] United States Department of State would neither implement Title III nor Title IV of the Libertad Act, Melia Hotels International withdrew the offer of US$5 million and proposed US$3,197.75 representing a value (.06%) based upon the twenty-nine (29) acres of land occupied by the Sol Rio de Oro Hotel of the approximately 120,000 acres of land claimed by the descendants of the owners of the property. The US$3,197.75 was determined by Melia Hotels International as the corresponding percentage of the US$5 million tax loss carry-forward amount with the Internal Revenue Service (IRS) in the 1960's.  Title IV of the Libertad Act restricts entry into the United States by individuals who have connectivity to unresolved certified claims or non-certified claims.  Employees of one Canada-based company is currently known to be subject to this provision based upon a certified claim. 

LINK: 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." March 25, 2022

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

American Airlines Libertad Act Lawsuit: Magistrate Recommends Dismissal With Prejudice: "Because it is without dispute that the property was confiscated from a Cuban national"

JOSE RAMON LOPEZ REGUEIRO V. AMERICAN AIRLINES INC. AND LATAM AIRLINES GROUP, S.A. [1:19-cv-23965; Southern Florida District]

Rivero Mestre LLP (plaintiff)
Manuel Vazquez, P.A. (plaintiff)
Jones Day (defendant)
Akerman (defendant)

Omnibus Order (5/23/22)
20-Page Report and Recommendation (5/20/22)
Libertad Act Lawsuit Filing Statistics

Excerpts:

While I recommend that this Court has both subject matter and personal jurisdiction over the dispute and Defendant, I recommend dismissal for Plaintiff’s failure to allege that the property was confiscated from a United States national. Because it is without dispute that the property was confiscated from a Cuban national, I recommend that dismissal be with prejudice. I do not recommend that the Court reach the question of when or if Plaintiff acquired the claim, a factual dispute not appropriate for disposition on a motion to dismiss. Similarly, Defendant’s affirmative defense of lawful travel, on which it has the burden of proof, should not be resolved on this motion to dismiss. However, should the Court find Plaintiff’s claim may proceed, I do not recommend dismissal for failure to plead facts supporting the required mens rea, as Plaintiff’s allegation of pre-suit notice is sufficient to support the requisite scienter.

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