Spain's Iberostar Hoteles Files Motion To Dismiss, EC Document In Libertad Act Lawsuit. Court Of Appeals Ruled District Court Judge "Abused Discretion" By Permitting Too Much Time To File EU Document

The Trump-Pence Administration (2017-2021) on 2 May 2019 made operational Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”).  Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim 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.   

The Brussels, Belgium-based European Commission (EC) required nearly three years to decide to decide to instruct the defendant to “the extent necessary to file and defend a motion to dismiss the Complaint.”  The EC also reminded the [United States] Court that it “should restrain from exercising jurisdiction over Defendant on the basis of international comity.”  Lastly, the Decision by the EC was “labeled as sensitive” and “cannot be made public without the Commission’s authorization, and it must be stored securely and encrypted in storage and transmission.”  

MARIA DOLORES CANTO MARTI, AS PERSONAL REPRESENTATIVE OF THE ESTATES OF DOLORES MARTI MERCADE AND FERNANDO CANTO BORY V. IBEROSTAR HOTELES Y APARTAMENTOS SL [1:20-cv-20078; Southern Florida District; 21-11906 11th Circuit Court of Appeals]

Zumpano Patricios P.A. (plaintiff)
Bird & Bird (defendant)
Holland & Knight (defendant)

PAPERLESS ORDER: reopening this matter and directing the Defendant to respond to the Plaintiff's complaint no later than January 11, 2023, in accordance with the mandate of the Eleventh Circuit Court of Appeals (ECF No. 66) and the Defendant's most recent status report dated December 16, 2022 (ECF No.65). The parties are further reminded of their duty to meet and confer regarding discovery and scheduling issues and to submit a joint discovery plan and conference report to the Court, as directed in the Court's order requiring scheduling conference. (ECF No.5.) The Clerk is directed to reopen this matter. Signed by Judge Robert N. Scola, Jr. (cst) (Entered:12/21/2022) 

LINK: Defendant’s Motion To Dismiss Plaintiff’s Complaint And Memorandum Of Law (1/11/23)
LINK: Libertad Act Title III Lawsuit Filing Statistics

From Plaintiff Filing: “1 On December 14, 2022, Iberostar Spain received a Commission Implementing Decision from the European Commission (“Decision”) on its application for authorization to respond to the Complaint in this action. In the Decision the European Commission authorized Iberostar Spain to move to dismiss this action, and specifically stated: “In the framework of such an exceptional authorisation, the Commission finds it relevant to make the following points: (a) The Commission recalls that the extra-territorial application of sanctions is an outright violation of international public law . . . . Therefore, the Commission considers that it would be against international law for the U.S. Court to exercise jurisdiction over the Applicant and an action in U.S. courts supporting such a claim is in the Union interest. (b) It is also in the Union’s interests that the U.S. Court has all the necessary elements at its disposal in order to declare its own lack of jurisdiction. This is not only desirable from a legal standpoint but it is also necessary in order to achieve the general policy objectives of Regulation (EC) No 2271/96 and protect the Applicant. U.S. courts have already dismissed other Helms-Burton lawsuits on jurisdictional grounds. (c) It is also in the Union’s interests that this case adds to the existing case law where U.S. courts dismiss Helms-Burton claims on lack of personal jurisdiction. In particular, the Commission considers it important that a default judgment in this case does not result in the creation of case law that is contrary to the interests of EU operators . . . .” The Decision expressed a need to build on the U.S. doctrine of international comity, while emphasizing that this Court does not have jurisdiction over Defendant, and it should restrain from exercising jurisdiction.”

Western Union Returns To The Cuba Marketplace; Initial Small Steps Should Lead To Vibrant Funds Transfer Opportunities For MSMEs In Cuba And For U.S. Companies And U.S. Investors

Western Union Returns To The Cuba Marketplace; Initial Small Steps Should Lead To Vibrant Funds Transfer Opportunities For MSMEs In Cuba And U.S. Companies And U.S. Investors 

Denver, Colorado-based Western Union Company (2022 revenue approximately US$4.6 billion) has re-commenced currency delivery service from the United States to the Republic of Cuba.  The pilot in-person only program is operational in fewer than thirty locations in the State of Florida.  

Customers in the United States may send funds to bank accounts and debit card accounts located at Republic of Cuba government-operated Banco Popular de Ahorro; Republic of Cuba government-operated Banco Metropolitano S.A.; and Republic of Cuba government-operated Banco de Credito y Comercio (Bandec).   

There is a daily limit of US$2,000.00.  Customers may not at this time send to their own Moneda Libremente Convertible (MLC) or debit cards in the Republic of Cuba.  The deposits are only available in United States Currency.  The recipients in the Republic of Cuba must present a Republic of Cuba government-issued “Carnet de Identidad.” 

According to a representative of Republic of Cuba government-operated Central Bank of the Republic of Cuba (CBC), funds sent to the Republic of Cuba by Western Union Company are processed through Republic of Cuba government-operated Orbit S.A. which then directs the funds to the three financial institutions located in the Republic of Cuba.  The goal is to expand the number of Republic of Cuba government-operated financial institutions participating in the pilot program. 

There are two Florida-based companies with agreements to use Orbit S.A. for the transfer of funds from the United States to the Republic of Cuba.  The first was Miami-based eight-office VaCuba which obtained a license in November 2022 from the Office of Foreign Assets Control (OFAC).  VaCuba charges customers a 7% transfer fee on the value of the transaction. 

The Official Gazette of the Republic of Cuba reported that Orbit S.A. was incorporated in the city of Havana by Notarial Deed No. 54, of February 3, 2020.  The Official Gazette published the resolution signed by Sabina Wilson, president of the CBC, accepting Orbit SA’s request to “manage and process international transfers from abroad to Cuba” and “provide payment services from abroad through its infrastructure.”  The origin of Orbit SA remains unknown.   

Until November 2020, during the Trump-Pence Administration (2017-2021), currency transfers by Western Union to the Republic of Cuba were processed in the Republic of Cuba by Republic of Cuba government-operated Fincimex which managed the 407 points of distribution where Republic of Cuba nationals could obtain, in currency, transfers sent from the United States.  The United States Department of State then included Fincimex in the Cuba Restricted List which listed entities located in the Republic of Cuba deemed to have connectivity with the Revolutionary Armed Forces (FAR) of the Republic of Cuba.  

Since October of 2020, remittance forwarders, financial institutions, and companies in the United States asked repeatedly the government of the Republic of Cuba to permit other Republic of Cuba government-operated financial institutions to receive and send remittances.  Those requests were denied by the government of the Republic of Cuba.  Only in February 2022 did the government of the Republic of Cuba authorize another Republic of Cuba government-operated financial institution to process remittances.   

U.S. Banks Doing What  

In 2015, Pompano Beach, Florida-based Stonegate Bank (2017 assets approximately US$2.9 billion) acquired accounts for the Embassy of the Republic of Cuba in Washington, DC, and the Permanent Mission of the Republic of Cuba to the United Nations in New York after Buffalo, New York-based M&T Bank Corporation (2021 assets approximately US$150 billion) notified the embassy and mission that it would no longer provide services due to challenges with regulatory compliance for many accounts with embassies and missions.    

Stonegate Bank received a license from the OFAC for a correspondent account at Banco Internacional de Comercia SA (BICSA), a member of Republic of Cuba government-operated Grupo Nuevo Banca SA, created by Corporate Charter No. 49 in 1993 and commenced operation in 1994.    

According to the Republic of Cuba, “Its [BICSA] main activity is ‘enterprises’ bank’ carried through its central services and five branches based in the country’s capital, Santiago de Cuba and Villa Clara. It records all transactions in real time providing its customers with card and remote banking services while it is working on developing other methods of electronic banking.  Its institutional clients, national or foreign, receive a complete accounting and documentary service, while national entities also enjoy of significant volumes of credit facilities. Practically all sectors of the economy benefit from all this, such as that of agriculture, the food industry, the basic and light industries, transportation, aviation, fishing, construction, domestic and foreign trade, the iron and steel industry, sugar, informatics, communications and others with not only economic importance but also social, such as health, water supply, education, culture and sports.  Credit policy followed by the Bank is dictated in a collegiate way by its Credit Committee on the basis of a strict analysis and control in loan making.  The Bank counts on correspondents in the five continents, the majority are first class banks, mainly Europeans and Americans.  Equity capital of shareholders (Grupo Nueva Banca with the biggest share and Bancholding), near the USD95 millions with a balance ranging from 550 to 600 millions, make sure the Bank has a strong solvency ratio.”  

Without explanation the Obama-Biden Administration did not authorize BICSA under a license from the OFAC to have a correspondent account at Stonegate Bank, so Stonegate Bank routed transactions for approximately eighty (80) customers on a regular basis through Panama City, Panama-based Multibank (2019 assets approximately US$5 billion) which had dealings with the Republic of Cuba.  

However, on 16 June 2020, Bogota, Colombia-based Grupo Aval (2021 assets approximately US$110 billion) reported that “On May 25th, Banco de Bogotá, through its subsidiary Leasing Bogotá S.A. Panamá, acquired 96.6% of the ordinary shares of Multi Financial Group [Multibank]. As part of the acquisition process, MFG’s operation in Cuba was closed and as part of the transaction. Grupo Aval complies with OFAC regulations and doesn't have transactional relationships with Cuba.”  

In 2017, Conway, Arkansas-based Home BancShares (2022 assets approximately US$18 billion) through its subsidiary Centennial Bank purchased Stonegate Bank.  Stonegate Bank operations were absorbed into Centennial Bank.    

In June 2022, Elk Grove Village, Illinois-based Chicago, Illinois-based First American Bank (2022 assets approximately US$6 billion) acquired from Centennial Bank an operating account (and Republic of Cuba-focused branch personnel) for the Embassy of the Republic of Cuba in Washington, DC.  First American Bank continues to evaluate establishing a correspondent account with BICSA and if BICSA is authorized by the OFAC to establish a correspondent account with First American Bank, there would be an opportunity for two-way fund transfers for authorized transactions (agricultural commodities, food products, healthcare products (medical equipment, medical instruments, medical supplies, pharmaceuticals, informational materials, travel (visa processing, overflight fees, landing fees, accommodation payments- Airbnb, etc.), remittances, entrepreneurial activities (direct investment to and direct financing for privately-owned companies located in the Republic of Cuba, etc.).    

With the 10 May 2022 license from the OFAC authorizing for the first-time direct equity investment in and direct financing to a privately-owned micro, small, and medium-sized enterprise (MSME) located in Cuba and owned by a Cuban citizen, the next logical decision by the Biden-Harris Administration (2021- ) is to authorize direct correspondent banking.   

Investors and sources of financing in the United States must have a direct, efficient, and transparent means to send their funds to the Republic of Cuba and have a direct, efficient, and transparent means to receive their investment income, dividends, and loan payments.  

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Links To Related Analyses 

OFAC Authorizes Orbit S.A. In Cuba To Engage In Remittance Transactions- Not On Cuba Restricted List (CRL). Western Union Next Up To Return? November 18, 2022 

Has Cuba Provided An Opportunity For Biden-Harris Administration To Renew Electronic Remittance Services?  Orbit S.A. In Cuba Now Permitted To Engage. Can It Meet U.S. Conditions? A False-Flag? February 09, 2022 

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

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

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

Cuba Has Options To Retain Western Union Electronic Remittance Services- Transfer To A Bank? November 17, 2020 

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

Cuba Says Western Union's 407 Distribution Points Will Close; Western Union Not Giving Up- 2016 Seems So Long Ago... October 28, 2020 

Western Union May Cease Money Transfers From Outside Of The United States To Cuba February 18, 2020 

Western Union Expands Operations In Cuba June 07, 2016 

Western Union Expands Remittance Services To Cuba March 21, 2016 

Facing Extinction Like Javan Rhino? Non-U.S. Banks Engaging With U.S. And Non-U.S. Entities For Authorized Transactions Involving Cuba Due To Risk Of OFAC Penalties. Since 2015, Only Two U.S. Banks. October 17, 2022 

Now The Hard Part For Cuba: Implementing Quickly Transparent, Equal-For-All, MSME Investment & Financing Regulations. No Limitations. No Selectivity. No Orwellian Process. August 04, 2022 

First Cuban-American-Owned Nationally-Chartered Bank In The United States, Now Owned by First American Bank, Handling Cuba Embassy/UN Mission Transactions. They Do Not Want To Talk About It. July 21, 2022

U.S. Food/Agricultural Commodity Exports To Cuba Increased 19.4% In November 2022; Up 4.5% Year-To-Year. Shock- Humanitarian Donations Thus Far Up 152.6% From 2022 With One Month To Go.

ECONOMIC EYE ON CUBA©
January 2023

November 2022 Ag/Food Exports To Cuba Increase 19.4% - 1
49th Of 227 November 2022 U.S. Food/Ag Export Markets- 2
Year-To-Year Exports Increase 4.5%- 2
Cuba Ranked 56th Of U.S. Ag/Food Export Markets- 2
November 2022 Healthcare Product Exports US$1,210,056.00- 2
November 2022 Humanitarian Donations US$6,522,941.00- 3
Obama Administration Initiatives Exports Continue- 3
U.S. Port Export Data- 16

NOVEMBER 2022 FOOD/AG EXPORTS TO CUBA INCREASE 19.4%- Exports of food products and agricultural commodities from the United States to the Republic of Cuba in November 2022 were US$33,085,677.00 compared to US$27,699,046.00 in November 2021 and US$11,339,843.00 in November 2020.

January 2022 through November 2022 exports were US$289,143,160.00 compared to January 2021 through November 2021 exports of US$276,683,109.00. An increase of 4.5%.

November 2022 Exports Included among other items: Chicken Leg Quarters (Frozen); Chicken Meat (Frozen); Chicken Legs (Frozen); Meat of Bovines; Meat of Swine; Woodpulp; Preserved Chicken Meat; Beans; Olives; Hams; Tuna; Malt Extract; Pasta; Bread; Communion Wafers; Sardines; Fruit; Coffee; Vegetable Juices; Beer; Non-Alcoholic Beverages; Deodorants; Soap; Shampoo; Dentifrices; Disinfectants; Dermatological Agents; Beauty & Skin Care Preparations; and Detergents.

Humanitarian Donations for the period January 2022 through October 2022 were US$27,970,997.00 compared to US$11,074,090.00 for calendar year 2021. With one month remaining in 2022, the increase represents 152.6%.

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 AVAILABLE SOON

Next Filing Due 11 January 2023 After EC Issues “Sensitive Decision” In Iberostar Of Spain Libertad Act Lawsuit. After Waiting 967 Days, U.S. Court Of Appeals Had Enough- No More “Comity”

Next Filing Due By 11 January 2023 After European Commission Issues “Sensitive Decision” In Iberostar Of Spain Libertad Act Lawsuit.  After Waiting 967 Days, U.S. Court Of Appeals Had Enough- No More “Comity” 

The Trump-Pence Administration (2017-2021) on 2 May 2019 made operational Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”).  Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim 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.   

After waiting 967 days, on 21 November 2022 the United States Court of Appeals for the Eleventh Circuit in Atlanta, Georgia, ruled that “comity” had been elasticized past its reasonable limitations by a lower court in a lawsuit first filed on 8 January 2020 in the Southern District of the United States District Court in Miami, Florida.  The plaintiff had waited long enough. 

The Cornell Law School Legal Information Institute defines “comity” where “courts of one state or jurisdiction respecting the laws and judicial decisions of other jurisdictions- whether state, federal or international- not as a matter of obligation but out of deference and mutual respect.”  

Adding to what will likely be further indigestion by both the United States Court of Appeals for the Eleventh Circuit and the Southern District of the United States District Court will be the decision taken by the Brussels, Belgium-based European Commission (EC), the administrative body for the twenty-seven country members of the European Union (EU) relating to the defendant, Palma, Spain-based Iberostar Hoteles y Apartamentos S.L.   

The EC required nearly three years to decide to decide to instruct the defendant to “the extent necessary to file and defend a motion to dismiss the Complaint.”  The EC also reminded the Court that it “should restrain from exercising jurisdiction over Defendant on the basis of international comity.”  Lastly, the Decision by the EC was “labeled as sensitive” and “cannot be made public without the Commission’s authorization, and it must be stored securely and encrypted in storage and transmission.”  

Quite likely that the plaintiff in this lawsuit along with other plaintiffs and defendants in some of the other forty-four Libertad Act Title III lawsuits filed since 2 May 2019, particularly those with connectivity to the EC, will seek to have the complete text of the EC decision publicly available. 

MARIA DOLORES CANTO MARTI, AS PERSONAL REPRESENTATIVE OF THE ESTATES OF DOLORES MARTI MERCADE AND FERNANDO CANTO BORY V. IBEROSTAR HOTELES Y APARTAMENTOS SL [1:20-cv-20078; Southern Florida District; 21-11906 11th Circuit Court of Appeals]

Zumpano Patricios P.A. (plaintiff)
Bird & Bird (defendant)
Holland & Knight (defendant)

Response/Answer Due Deadline: Iberostar Hoteles Y Apartamentos SL response/answer due 1/11/2023. PER DE#67 (cds) (Entered: 12/22/2022)

PAPERLESS ORDER: reopening this matter and directing the Defendant to respond to the Plaintiff's complaint no later than January 11, 2023, in accordance with the mandate of the Eleventh Circuit Court of Appeals (ECF No. 66) and the Defendant's most recent status report dated December 16, 2022 (ECF No. 65). The parties are further reminded of their duty to meet and confer regarding discovery and scheduling issues and to submit a joint discovery plan and conference report to the Court, as directed in the Court's order requiring scheduling conference. (ECF No. 5.) The Clerk is directed to reopen this matter. Signed by Judge Robert N. Scola, Jr. (cst) (Entered: 12/21/2022) 

LINK: Defendant’s Interim Status Report (12/16/22)
LINK: Court Costs (12/20/22)
LINK: Opinion From Court Of Appeals (11/21/22)
LINK: Libertad Act Title III Lawsuit Filing Statistics

Excerpt From Opinion From Court Of Appeals 

“Maria Dolores Canto Marti has waited almost three years for Iberostar Hoteles y Apartamentos S.L. to respond to her lawsuit. In January 2020 she sued Iberostar under the Helms[1]Burton Act, which grants the right to sue companies trafficking in property confiscated by the Cuban government. 22 U.S.C. § 6082. Marti claims that Cuba seized her family’s hotel in 1961 and that Iberostar and the Cuban government now operate the hotel together.  

Shortly after the suit was filed, the district court stayed the case at Iberostar’s request. In support of the stay, Iberostar pointed to a European Union blocking regulation that prohibits participation in Helms-Burton suits—on pain of a fine that could reach 600,000 euros here. Iberostar had applied for an exception to the regulation, and the district court stayed the case pending the European Commission’s decision. The suit has remained frozen ever since. As months passed with no progress from the European Commission, Marti sought to end the stay. She twice moved to lift it, first in July 2020 and again in March 2021. The district court refused, relying on international comity, fairness, and judicial economy.  

Marti now appeals the denial of her second motion. European Commission deliberations have stopped this case in its tracks, with no end in sight. Marti has effectively been pushed out of federal court. That means we have jurisdiction over the stay order, which is “immoderate” and thus unlawful. It is indefinite in duration and has stalled the case for almost three years. Considering this delay, we find that any earlier justifications for the stay have eroded. We reverse the district court’s denial of Marti’s renewed motion and vacate the stay. The case must go on.” 

Defendant’s Interim Status Report 

Defendant IBEROSTAR HOTELES Y APARTAMENTOS, S.L.U. (“Iberostar”) submits1 this interim status report pursuant to this Court’s Order Granting Defendant’s Motion to Stay Proceedings dated April 24, 2020 (D.E. 17), directing Defendant to submit status reports every 30 days on its request for authorization to the European Union Commission. Defendant states as follows:  

1. On December 14, 2022, Iberostar received a Commission Decision Implementing Decision from the European Commission (“Decision”) on its application for authorization to respond to the Complaint in this action which was filed with the European Commission on April 15, 2020 (“Application”). Defendant’s Motion to Stay, ¶ 2. (D.E. 16). 1 Iberostar reserves all its rights and intends to move to dismiss based on its Rule 12 defenses consistent with the authorization received from the European Commission.  

2. In the Decision the European Commission authorized Iberostar to move to dismiss this action. The Commission considered that Iberostar’s Application was necessary and justified. It further stated that the authorization is of “exceptional” nature and limited to “the extent necessary to file and defend a motion to dismiss the Complaint.”  

3. In the Decision, the Commission stated the European Union’s position that the extra-territorial application of sanctions by the U.S. is an outright violation of international public law. The Commission also restated that this Court does not have jurisdiction over Defendant, and should restrain from exercising jurisdiction over Defendant on the basis of international comity.  

4. Finally, the Decision was labeled as “sensitive” by the Commission. As a result, the Decision cannot be made public without the Commission’s authorization, and it must be stored securely and encrypted in storage and transmission.

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Another Unpublicized U.S. Senator Visit To Cuba. Rather Than Focus On What Cuba Private Sector Needs From Cuba Government, He Focuses Upon What Cuba Private Sector Needs From U.S. Government.

Another U.S. Senator Makes A Unpublicized (Basically Secret) Visit To Cuba. 
Welcome’s New Year In Havana.  

Rather Than Focus On What Cuba Private Sector Needs From Cuba Government, He Focuses Upon What Cuba Private Sector Needs From United States Government.  

The Honorable Ronald Wyden (D- Oregon), Chairman of the United States Senate Committee on Finance, embarked on an unpublicized visit to the Republic of Cuba from 29 December 2022 (no date provided by Senator Wyden’s office) to 1 January 2023.  He last reported visit to the Republic of Cuba was February 2018.   

The visit went unreported by his office until his office issued a media release- three days after he returned from the Republic of Cuba to the United States.  The precise dates of the visit were neither reported in advance by Senator Wyden nor reported immediately after the conclusion of the visit.  When he arrived to the Republic of Cuba has yet to be reported.  The source of funding for the visit to the Republic of Cuba has not been disclosed.  These are rookie errors- unexpected by the chairman of a committee of the United States Senate, particularly one where details and transparency are important. 

Granma, the official newspaper of the Communist Party of the Republic of Cuba, published two articles (one with one image and one with two images) about the visit by Senator Wyden on 29 December 2022 and 30 December 2022.  Senator Wyden was comfortable with Granma reporting on the visit- in real time, but uncomfortable reporting in advance about the visit himself.  Why?  

No advance media release, no advance post to Twitter or Facebook, no advance media interview(s) and, most egregiously, no outreach seeking briefings with individuals and organizations who focus upon micro, small, and medium-size enterprises (MSMEs) in the Republic of Cuba and have licenses issued 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 for engagement with MSMEs in the Republic of Cuba.   

Reasonable to believe Senator Wyden would have found value in learning what the holders of those licenses continue to await- for nearing two years from the Diaz-Canel-Valdes Mesa Administration (2019- ). 

• On 10 May 2022, the OFAC issued the first license authorizing direct investment in and direct financing to a privately-owned company located in the Republic of Cuba owned by a Republic of Cuba national. 

• The government of the Republic of Cuba has yet to publish regulations with a delay of nearing two years as to the process for MSMEs in the Republic of Cuba to receive direct investment and direct financing. 

Does this lack of transparency, lack of ownership, lack of preparation matter?  Yes, it does.  For a member of the United States Congress (United States Senate and United States House of Representatives) to travel to the Republic of Cuba and not publicize the agenda in advance and then not or wait to publicize the agenda subsequent to the completion of the visit only serves one purpose- to maintain the stigma, the lack of legitimacy, the lack of importance, for the visit to the Republic of Cuba. 

In the media release published on 4 January 2023, Senator Wyden shared a statement about his interactions in the Republic of Cuba with representatives of MSMEs in which he provided a list of what the representatives of the MSMEs shared they are seeking from the Biden-Harris Administration (2021- ).   

“During my visit to Cuba I was told by entrepreneurs that the vibrant Cuban private sector would benefit from narrow changes to U.S. licensing and other rules,” Wyden said. “Specifically, the entrepreneurs told me that general licenses, allowing them to operate in spite of the sanctions, would bring legitimacy and credibility to them and their businesses. They told me they expected these changes to lead to the creation of thousands of new businesses. In addition, they said bank accounts would make it easier to attract investment capital, and knowing that I authored the U.S. e-commerce law, they requested that I assist with their e-commerce initiatives.”  

Significantly, Senator Wyden reported receiving input about banking- and its importance to MSMEs.   

One meaningful focus for Senator Wyden in 2023 during his discussions with officials of the Biden-Harris Administration at The White House (National Security Council), United States Department of State, United States Department of the Treasury, and United States Department of Commerce would be to gain authorization for direct correspondent banking.  

Currently, payments for electric vehicles; remittance transfers; payments to United States exporters of agricultural commodities, food products, and healthcare products; payments for authorized travel and required visas; payments for airline landing fees; and payments for telecommunications must be transferred through financial institutions located in third countries because the OFAC authorizes United States-based financial institutions to have correspondent accounts at Republic of Cuba government-operated financial institutions, but does not authorize Republic of Cuba government-operated financial institutions to have correspondent accounts with United States-based financial institutions.   

In 2022, the Biden-Harris Administration approved the first license authorizing direct investment and direct financing to a privately-owned company owned by a Republic of Cuba national and located in the Republic of Cuba and approved the first license to export electric vehicles to MSMEs.  Each of these licenses are negatively impacted by the lack of direct correspondent banking. 

When the Diaz-Canel-Valdes Mesa Administration publishes the regulations for the delivering of direct investment funds and dividends and financing funds and interest/interest/principal payments to MSMEs, then critical for direct correspondent banking infrastructure to be in place and to be operational. 

If Senator Wyden wants to deliver a significant contribution to the re-engagement by United States-based individuals and companies with MSMEs in the Republic of Cuba, then focus upon two items:  

• Direct correspondent banking

• Publication of regulations by the Diaz-Canel-Valdes Mesa Administration for the delivery of direct investment and direct financing to MSMEs.   

Recent Analysis 

Why The Delay?  Nearing Nineteen Months And Cuba Has Yet To Issue Investment And Financing Regulations, Procedures For MSMEs.  Biden Administration Authorized Investment And Financing In May 2022.  There Are Nearing 6,000 MSMEs That Could Receive Support From U.S. Investors And U.S. Financiers.     

Delays Are An Incentive For The Republic Of Cuba’s “Best And Brightest” Who Will Create And Manage And Grow MSME’s To Leave The Country And Pursue Opportunities Elsewhere- Particularly In The United States. That’s Not Good For The Republic Of Cuba. 

Nearing eight months after the Biden-Harris Administration (2021- ) approved on 10 May 2022 the first license authorizing direct investment and direct financing to a privately-owned company owned by a Republic of Cuba national and located in the Republic of Cuba, the Diaz-Canel-Valdes Mesa Administration (2019- ) has yet to publish regulations as to the process for delivering the direct investment and direct financing.  

With each day in delay, the government of the Republic of Cuba increases the level of suspicion by individuals and corporate entities that the self-stated commitment to the re-emerging private sector in the Republic of Cuba is sustainable.    

Direct investment to and direct financing for MSMEs should not be equated to direct investment to and direct financing to a Republic of Cuba government-operated company or to a joint venture, economic cooperation agreement, or other form of engagement with a Republic of Cuba government-operated entity.  

The process for MSMEs to receive direct investment and direct financing should be simple, should be easy, and should not require a committee to approve.  Provided the MSMEs self-certify that they are in compliance with regulations issued by the government of the Republic of Cuba, MSMEs must be deemed to be compliant absent evidence of non-compliance.  

According to the most recent data published by the government of the Republic of Cuba, there are 5,643 private MSMEs in the Republic of Cuba which includes sixty-eight (68) Republic of Cuba government-operated entities and fifty-nine non-agricultural cooperatives.  Fifty-two percent (52%) of the entities are conversions of pre-existing enterprises and forty-eight percent (48%) are new enterprises.  

Carlos Fernández de Cossío, Deputy Minister of Foreign Relations of the Republic of Cuba (MINREX), shared this week the following statements which were then and remain now contrary to previous statements from officials of the government of the Republic of Cuba relating to authorizing micro, small, and medium-sized enterprises (MSMEs) to receive direct foreign investment and direct foreign financing from United States-based sources which the Biden-Harris Administration (2021) first authorized on 10 May 2022.    

If the government of the Republic of Cuba is supportive, then why nearing an eight-month delay for the issuance of regulations so that unilateral decisions by the Biden-Harris Administration may begin to deliver value to MSMEs?   

• “If this [unilateral decisions by the Biden-Harris Administration] allows greater prosperity of any sector of the economy, we will not put up obstacles. If they manage to devise exceptions that benefit some and continue to punish others, we will not try to prevent it either.” 

• On Biden-Harris Administration decisions since 20 January 2022: “it has not had perceptible changes” to the overall United States-Republic of Cuba bilateral relationship. 

• About Biden-Harris Administration decisions reported “with much fanfare” he saw none. 

• “There is still no regular flow of remittances... and if it happens in the near future, it is due to steps that Cuba has taken and not to decisions taken by the United States.”  

For the last statement, Mr. de Cossío is partially correct noting the Biden-Harris Administration has yet to authorize direct correspondent banking.  To be factual, the Obama-Biden Administration (2009-2017) authorized in 2015 United States-based financial institutions to have correspondent accounts with Republic of Cuba government-operated financial institutions.  However, without explanation- and there continues to be no rationale provided by the Biden-Harris Administration, the 2015 decision by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury did not authorize Republic of Cuba government-operated financial institutions to have correspondent accounts with United States-based financial institutions.  The lack of direct correspondent banking means that funds (particularly commercially-related: those supporting MSMEs, and United States agricultural commodity and food product exports) from the United States to the Republic of Cuba and funds from the Republic of Cuba to the United States must navigate through financial institutions located in third countries- thus a triangle rather than a straight line.  Result is more time, more cost, and less transparency.    

Where Mr. de Cossío is not accurate- the government of the Republic of Cuba could have provided alternative Republic of Cuba government-operated financial institutions when the Trump-Pence Administration (2017-2021) in October 2020 included one in the Cuba Restricted List (CRL) maintained by the United States Department of State.  Remittance forwarders, financial institutions, and companies in the United States asked repeatedly the government of the Republic of Cuba to permit other Republic of Cuba government-operated financial institutions to receive and send remittances.  Those requests were denied by the government of the Republic of Cuba.  Only in February 2022 did the government of the Republic of Cuba authorize another Republic of Cuba government-operated financial institution to process remittances.  The delay was self-inflicted.   

LINKS TO RELATED ANALYSES

Mr. de Cossio At MINREX In Cuba Not Quite Accurate With His Comments About Biden-Harris Administration Efforts With MSMEs And Remittances Dec 20, 2022

If MSMEs Are Important To Cuba, Why Nearing Seven Months And No Regulations Authorizing Foreign Investment And Foreign Financing? Biden Administration And 6,000 MSMEs In Cuba Are Waiting. Nov 30, 2022

Biden-Harris Administration Approves First Equity Investment Since 1960 In A Private Cuban Company May 10, 2022 

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. May 16, 2022  

Biden Administration Will Use Cuba's Authorization Of SMSE's As Means To Expand Support For Cuba Private Sector- U.S. Investments And Loans May Be Next June 02, 2021 

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

Might Cubaexport In 2020 Permit “Independent Entrepreneurs” To Export Coffee Beans, Cocoa and Honey To The United States? January 14, 2020  

January 04, 2023- Wyden: Cuban Private Sector Small Businesses Should Get Strong U.S. Support.  Following Fact-Finding Trip to Cuba, Wyden Renews Call to Normalize Trade Relations; Wyden Raised Need to Improve Human Rights In Meeting with Cuban President 

• Washington, D.C. – U.S. Sen. Ron Wyden, D-Ore., is calling on the Biden Administration to strengthen support for Cuba’s small and medium-sized private enterprises by creating more general licenses, as well as giving the private sector access to international banking, following his fact-finding trip to Cuba. Wyden, who chairs the Senate Finance Committee and was the first Senator to visit Cuba in four years, intends to discuss his ideas with Senate colleagues over the weeks ahead.  “During my visit to Cuba I was told by entrepreneurs that the vibrant Cuban private sector would benefit from narrow changes to U.S. licensing and other rules,” Wyden said. “Specifically, the entrepreneurs told me that general licenses, allowing them to operate in spite of the sanctions, would bring legitimacy and credibility to them and their businesses. They told me they expected these changes to lead to the creation of thousands of new businesses. In addition, they said bank accounts would make it easier to attract investment capital, and knowing that I authored the U.S. e-commerce law, they requested that I assist with their e-commerce initiatives.”  

• Wyden believes the U.S. rule changes would benefit private sector Cuban companies, and developing Cuban economic opportunities would help reduce Cuban migration to the United States. He believes a growing middle class of entrepreneurs and family businesses will lay the foundations for fundamental political and economic reforms in one of our closest neighbors.  The senator also saw growing involvement by China in the Cuban economy, which can present national security as well as economic security concerns for Americans. 

• In addition to Wyden’s work on these new small business proposals, the senator continued his ongoing efforts to build support for three of his long-standing priorities – ending the economic embargo, normalizing U.S.-Cuban trade relations and removing Cuba’s designation as a state sponsor of terrorism – while emphasizing the need to improve human and worker rights in the country. In a meeting on December 28, 2022, Senator Wyden urged Cuban President Miguel Díaz-Canel to offer clemency for the July 2021 Cuban protestors.  On his last day in Cuba, January 1, 2023, the senator visited with Miguel Calderon Gomez, the famous former coach of the Cuban national basketball team, to discuss how basketball and sports can contribute to better relations between nations. Calderon Gomez also reminisced with Wyden about how the United States “Dream Team” beat the Cuban squad he coached 30 years ago in Portland, Oregon, before the Barcelona Olympics.  Wyden is the sponsor of legislation to end the trade embargo of Cuba, and last year urged the Biden-Harris administration to reverse Donald Trump’s failed Cuba policies. He last visited Cuba in 2018, as part of a Senate delegation. 

• https://www.wyden.senate.gov/news/press-releases/wyden-cuban-private-sector-small-businesses-should-get-strong-us-support 

• https://www.granma.cu/cuba/2022-12-29/recibio-presidente-cubano-a-senador-de-estados-unidos 

• https://www.granma.cu/cuba/2022-12-30/esteban-lazo-se-reune-con-el-senador-estadounidense-ron-wyden-30-12-2022-11-12-26

• https://www.plenglish.com/news/2023/01/05/democratic-senator-insists-on-lifting-us-blockade-on-cuba/

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

After 43 Months, Florida District Court Judge Hands First Cuba Libertad Act Verdict- Four Cruise Lines Must Pay US$439,217,424.51 Plus US$11,707,484.31 In Legal Fees. Appeals Probable.

“Had the Clinton-Gore Administration (1993-2001), Bush-Cheney Administration (2001-2009), Obama-Biden Administration (2009-2017) and Trump-Pence Administration (2017-2021) in conjunction with the [Fidel] Castro Administration (1976-2008), [Raul] Castro Administration (2008-2018), and Diaz-Canel-Valdes Mesa Administration (2019-) engaged directly in negotiations to resolve the 5,913 certified claims valued at US$1,902,202,284.95 by the United States Foreign Claims Settlement Commission (USFCSC), then Title III of the Libertad Act may not have been implemented in May 2019 by the Trump-Pence Administration and the commercial, economic, and political bilateral trajectory may likely have been far different today than it is today.”

The Trump-Pence Administration (2017-2021) on 2 May 2019 made operational Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”).  

Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim 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.   

On 2 May 2022, Havana Docks Corporation, a certified claimant, was the first to file a Libertad Act Title III lawsuit in the United States Southern District Court in Miami, Florida.  LINK TO COMPLAINT.  The defendants were Carnival Corporation, MSC Cruises, Norwegian Cruise Line Holdings, and Royal Caribbean Cruises. 

Not unnoticed that the first lawsuit filed is the first lawsuit have a judgement, a verdict, by a United States District Court.  The process took forty-three (43) months. 

Next, the defendants, collectively or individually, will decide to: 1) accept the verdict 2) seek to overturn or revise the judgement through a filing to the Atlanta, Georgia-based Eleventh Circuit Court of Appeals or 3) seek to settle with the plaintiff for an amount likely less then the judgement confirmed by the District Court. 

Of the forty-four (44) Libertad Act Title III lawsuits filed since 2 May 2019, one has been settled for an undisclosed amount; one has reached a court verdict/judgement; some have been dismissed; some have been appealed to respective Courts of Appeals; two have sought, but not received review by the United States Supreme Court.

HAVANA DOCKS CORPORATION VS. CARNIVAL CORPORATION D/B/A/ CARNIVAL CRUISE LINES [Consolidated to 1:19-cv-23591; 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. [Consolidated to 1:19-cv-23591; 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. [Consolidated to 1:19-cv-23591; 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. [Consolidated to 1:19-cv-23591; 1:19-cv-23590; Southern Florida District]
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Holland & Knight (defendant)

LINK: Final Judgement Norwegian Cruise Lines (12/30/22)
LINK: Final Judgement Royal Caribbean Cruise Lines (12/30/22)
LINK: Final Judgement Carnival Cruise Lines (12/30/22)
LINK: Final Judgement MSC Cruises (12/30/22)
LINK: Order On Plaintiff's Motion For Entry Of Final Judgement (12/30/22)
LINK: To Libertad Act Title III Lawsuit Filing Statistics

Excerpts:

THIS CAUSE is before the Court following the Court’s Order granting Plaintiff’s Motion for Entry of Judgment, ECF No. [452]. In accordance with Rule 58 of the Federal Rules of Civil Procedure, it is ORDERED AND ADJUDGED as follows: 1. Judgment is entered in favor of Plaintiff Havana Docks Corporation and against Norwegian Cruise Line Holdings, Ltd. 2. Plaintiff is awarded $109,848,747.87 in damages. This sum consists of $9,179,700.88, the amount of the claim certified by the Foreign Claims Settlement Commission, and $27,436,548.41 in interest, which amounts are trebled pursuant to 22 U.S.C. § 6082(a)(3)(C)(ii).  3. In addition, Plaintiff is awarded $2,817,073.61 in attorneys’ fees, and $261,002.00 in costs.  4. Post-judgment interest shall accrue on this Final Judgment pursuant to 28 U.S.C. § 1961.  5. To the extent not otherwise disposed of, all pending motions are denied as MOOT and all deadlines are TERMINATED.  6. The Clerk of Court is directed to CLOSE this case.  DONE AND ORDERED in Chambers at Miami, Florida, on December 30, 2022.

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.   

The ITT Corporation Agreement

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 controlled by Bethesda, Maryland-based Marriott International. 

U.S. Agricultural Commodity/Food Product Exports To Cuba In October Decreased 6.3%. Remain Up 2.8% Year-To-Year

ECONOMIC EYE ON CUBA©
December 2022

October 2022 Ag/Food Exports To Cuba Decrease 6.3% - 1
60th Of 226 October 2022 U.S. Food/Ag Export Markets- 2
Year-To-Year Exports Increase 2.8%- 2
Cuba Ranked 51st Of U.S. Ag/Food Export Markets- 2
October 2022 Healthcare Product Exports US$1,540,605.00- 2
October 2022 Humanitarian Donations US$4,828,631.00- 3
Obama Administration Initiatives Exports Continue- 3
U.S. Port Export Data- 16

OCTOBER 2022 FOOD/AG EXPORTS TO CUBA DECREASE 6.37%- Exports of food products and agricultural commodities from the United States to the Republic of Cuba in October 2022 were US$20,852,560.00 compared to US$22,271,632.00 in October 2021 and US$11,607,415.00 in October 2020. 

January 2022 through October 2022 exports were US$256,057,483.00 compared to January 2021 through October 2021 exports of US$248,984,063.00. An increase of 2.8%.

October 2022 Exports Included among other items: Chicken Leg Quarters (Frozen); Chicken Meat (Frozen); Chicken Legs (Frozen); Meat of Bovines; Meat of Swine; Whole Chickens; Wheat Flour; Preserved Chicken Meat; Coffee; Vegetable Juices; Beer; Non-Alcoholic Beverages; Deodorants; Soap; Shampoo; Dentifrices; Disinfectants.

Humanitarian Donations for the period January 2022 through October 2022 were US$21,448,056.00 compared to US$11,074,090.00 for calendar year 2021.

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

HHS References 2021 Cuban Patent Application In Licensing Notification: “HLA Class I-Restricted T Cell Receptors Against RAS with G12D Mutation”

AGENCY: National Institutes of Health, HHS.
ACTION: Notice.
SUMMARY: The National Cancer Institute, an institute of the National Institutes of Health, Department of Health and Human Services, is contemplating the grant of an Exclusive Patent License to practice the inventions embodied in the Patents and Patent Applications listed in the Supplementary Information section of this notice to Replay Holdings LLC (“Replay”) located in San Diego, California.
DATES: Only written comments and/or applications for a license which are received by the National Cancer Institute's Technology Transfer Center on or before January 17, 2023 will be considered.
ADDRESSES: Requests for copies of the patent application, inquiries, and comments relating to the contemplated an Exclusive Patent License should be directed to: Suna Gulay French, Technology Transfer Manager, Telephone: (240) 276-7424; Email: suna.gulay@nih.gov.
SUPPLEMENTARY INFORMATION: Intellectual Property Group A

142. Cuban Patent Application No. 2022-0044 effective filing date of February 12, 2021, entitled “HLA Class I-Restricted T Cell Receptors Against RAS with G12D Mutation” [HHS Ref. No. E-031-2020-0-CU-22];

(and U.S. and foreign patent applications claiming priority to the aforementioned applications)

The patent rights in these inventions have been assigned and/or exclusively licensed to the government of the United States of America. The prospective exclusive license territory may be worldwide, and the field of use may be limited to the following:

“Development, manufacture and commercialization of allogeneic Natural Killer (NK) cell therapy products engineered to express a therapeutic T cell receptor claimed in the Licensed Patent Rights for the treatment or prevention of cancer in humans. Specifically excluded from this field of use are Natural Killer T (NKT) cell therapy products engineered via viral and non-viral means for the treatment of human cancers, wherein the NKT cell therapy product contains at least 50% NKT cells.”

Intellectual Property Group A is primarily directed to isolated T cell receptors (TCRs) reactive to mutated Kirsten rat sarcoma viral oncogene homolog (KRAS), within the context of several human leukocyte antigens (HLAs). Mutated KRAS, which plays a well-defined driver role in oncogenesis, is expressed by a variety of human cancers, including pancreatic, lung, endometrial, ovarian and prostate. Due to its restricted expression in precancerous and cancerous cells, this antigen may be targeted on mutant KRAS-expressing tumors with minimal normal tissue toxicity.

This notice is made in accordance with 35 U.S.C. 209 and 37 CFR part 404. The prospective exclusive license will be royalty bearing, and the prospective exclusive license may be granted unless within fifteen (15) days from the date of this published notice, the National Cancer Institute receives written evidence and argument that establishes that the grant of the license would not be consistent with the requirements of 35 U.S.C. 209 and 37 CFR part 404.

In response to this Notice, the public may file comments or objections. Comments and objections, other than those in the form of a license application, will not be treated confidentially, and may be made publicly available.

License applications submitted in response to this Notice will be presumed to contain business confidential information and any release of information in these license applications will be made only as required and upon a request under the Freedom of Information Act, 5 U.S.C. 552.

Dated: December 23, 2022.
Richard U. Rodriguez,
Associate Director, Technology Transfer Center, National Cancer Institute.
[FR Doc. 2022-28404 Filed 12-29-22; 8:45 am]
BILLING CODE 4140-01-P

LINK TO FEDERAL REGISTER POSTING

Cuba Coffee At GUM Department Store On Red Square In Moscow. Unfortunately, Packages Past Their Sell-By Date

Good News: on 23 December 2022, Coffee From Cuba Available At GUM Department Store Located On Red Square In Moscow.  Bad News: Past Sell By Date.

Packaged: 11 March 2022
Sell By Date: 31 October 2022

Also available were non-ground coffee beans that store personnel offered to dispense from a glass tube display into smaller or larger packages.

Havana Club Rum At Flughafen Frankfurt am Main (Rhein-Main-Flughafen- FRA) Has Better Signage And Product Placement Than Bacardi.

Related Links: 

Despite Russia Relationship With Cuba, Vnukovo Airport Features Havana Club And Bacardi- With Captain Morgan Separating Them Dec 26, 2022

At Warsaw Chopin Airport, Barcardi Rum Has More Shelve Space And Better Placement, But Havana Club 7 Anos Has A "Best Choice" Sign Dec 19, 2022  

Havana Club And Bacardi... Facing-Off In Back-To-Back Duty Free Displays At Berlin Brandenburg Airport. October 28, 2022 

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

In Terminal 4 At Madrid-Barajas Airport, "Havana Club" From Cuba Has A Display, Bacardi From Bermuda Has A Display. No "Havana Club" From Bacardi. July 08, 2022 

In Belarus, Minsk Airport Duty Free Stores, Bacardi Outselling Havana Club. March 24, 2022 

Despite Russia Relationship With Cuba, Vnukovo Airport Features Havana Club And Bacardi- With Captain Morgan Separating Them

Related Links: 

At Warsaw Chopin Airport, Barcardi Rum Has More Shelve Space And Better Placement, But Havana Club 7 Anos Has A "Best Choice" Sign Dec 19, 2022  

Havana Club And Bacardi... Facing-Off In Back-To-Back Duty Free Displays At Berlin Brandenburg Airport. October 28, 2022 

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

In Terminal 4 At Madrid-Barajas Airport, "Havana Club" From Cuba Has A Display, Bacardi From Bermuda Has A Display. No "Havana Club" From Bacardi. July 08, 2022 

In Belarus, Minsk Airport Duty Free Stores, Bacardi Outselling Havana Club. March 24, 2022 

Mr. de Cossio At MINREX In Cuba Not Quite Accurate With His Comments About Biden-Harris Administration Efforts With MSMEs And Remittances

Carlos Fernández de Cossío, Deputy Minister of Foreign Relations of the Republic of Cuba (MINREX), shared this week the following statements which were then and remain now contrary to previous statements from officials of the government of the Republic of Cuba relating to authorizing micro, small, and medium-sized enterprises (MSMEs) to receive direct foreign investment and direct foreign financing from United States-based sources which the Biden-Harris Administration (2021) first authorized on 10 May 2022.   

If the government of the Republic of Cuba is supportive, then why nearing an eight-month delay for the issuance of regulations so that unilateral decisions by the Biden-Harris Administration may begin to deliver value to MSMEs?  

• “If this [unilateral decisions by the Biden-Harris Administration] allows greater prosperity of any sector of the economy, we will not put up obstacles. If they manage to devise exceptions that benefit some and continue to punish others, we will not try to prevent it either.” 

• On Biden-Harris Administration decisions since 20 January 2022: “it has not had perceptible changes” to the overall United States-Republic of Cuba bilateral relationship. 

• About Biden-Harris Administration decisions reported “with much fanfare” he saw none. 

• “There is still no regular flow of remittances... and if it happens in the near future, it is due to steps that Cuba has taken and not to decisions taken by the United States.” 

For the last statement, Mr. de Cossío is partially correct noting the Biden-Harris Administration has yet to authorize direct correspondent banking.  To be factual, the Obama-Biden Administration (2009-2017) authorized in 2015 United States-based financial institutions to have correspondent accounts with Republic of Cuba government-operated financial institutions.  However, without explanation- and there continues to be no rationale provided by the Biden-Harris Administration, the 2015 decision by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury did not authorize Republic of Cuba government-operated financial institutions to have correspondent accounts with United States-based financial institutions.  The lack of direct correspondent banking means that funds (particularly commercially-related: those supporting MSMEs, and United States agricultural commodity and food product exports) from the United States to the Republic of Cuba and funds from the Republic of Cuba to the United States must navigate through financial institutions located in third countries- thus a triangle rather than a straight line.  Result is more time, more cost, and less transparency.   

Where Mr. de Cossío is not accurate- the government of the Republic of Cuba could have provided alternative Republic of Cuba government-operated financial institutions when the Trump-Pence Administration (2017-2021) in October 2020 included one in the Cuba Restricted List (CRL) maintained by the United States Department of State.  Remittance forwarders, financial institutions, and companies in the United States asked repeatedly the government of the Republic of Cuba to permit other Republic of Cuba government-operated financial institutions to receive and send remittances.  Those requests were denied by the government of the Republic of Cuba.  Only in February 2022 did the government of the Republic of Cuba authorize another Republic of Cuba government-operated financial institution to process remittances.  The delay was self-inflicted. 

As Expected, Government Of Cuba Extends Import Duty Exemptions For Acompanied Baggage.

Ministry of Finances And Prices
Havana, Republic of Cuba
18 December 2022

Taking into consideration that the limitations in the supply of food and other products in the national market persist, as an effect of the intensification of the economic, commercial and financial blockade exercised by the US administration against our country and the worsening of the world and multidimensional economic crisis, which has resulted in the growth of the international prices of the goods necessary for the satisfaction of the needs of the population and the economic and social development of the country, it has been decided to extend until June 30, 2023 the tariff benefits temporarily approved by Resolution 309, dated July 15, 2021, regarding the exemption from payment of the Customs Tax for the non-commercial import of food, toiletries and medicines, by way of passengers as accompanied baggage. Consequently, the benefit of importing these products without limits in value and quantities is extended.

On this occasion, the measure is implemented through Resolution 298 of December 9, 2022, of the Ministry of Finance and Prices, published in Official Gazette No. 83 Extraordinary of December 15, 2022. The Ministry of Public Health and the General Customs of the Republic have extended the suspension of the import limits for medicines, food and cleaning products, through the respective resolutions.

In connection with the temporary tariff benefits provided by MFP Resolutions 318 and 321 of July 2021, which expire on December 31, 2021, on the exemption from the payment of tariffs on imports of food products and personal and household hygiene products by state entities and international economic associations; As well as inputs and raw materials destined to non-state management forms for the exercise of their activities, the referred Resolution 298 of 2022 grants an extension of these benefits to imports to be made in 2023, provided that the goods have been shipped at origin until December 31 of this year.

As part of the gradual recovery of the economy and the objective of achieving the stabilization of macroeconomic indicators, among which is the reduction of the fiscal deficit, it is necessary to maximize tax revenues in correspondence with the activities and taxable events incurred. Tariff benefits for the importation of products, raw materials and inputs for certain productive and service activities shall be issued by the MFP on a timely basis, upon request and justification of the importing entities or those rendering import services, taking into account the benefits they bring to the national economy and the population, and according to the procedure established for such purposes.

MINISTRY OF FINANCE AND PRICES

At Warsaw Chopin Airport, Barcardi Rum Has More Shelve Space And Better Placement, But Havana Club 7 Anos Has A "Best Choice" Sign

At a Duty Free retail store located in Warsaw Chopin Airport (WAW), there are more rum products offered by Bacardi than by Havana Club.  However, Havana Club has a “Best Choice” sign in front of its Havana Club 7 Anos. 

Related Links:

Havana Club And Bacardi... Facing-Off In Back-To-Back Duty Free Displays At Berlin Brandenburg Airport. October 28, 2022

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

In Terminal 4 At Madrid-Barajas Airport, "Havana Club" From Cuba Has A Display, Bacardi From Bermuda Has A Display. No "Havana Club" From Bacardi. July 08, 2022

In Belarus, Minsk Airport Duty Free Stores, Bacardi Outselling Havana Club. March 24, 2022

Libertad Act Cuba Lawsuit Against China Company Dismissed By District Court Due To "Personal Jurisdiction" Issues. Will There Be An Appeal? Eight Expensive Law Firms Battle.

NORTH AMERICAN SUGAR INDUSTRIES INC., V. XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD., GOLDWIND INTERNATIONAL HOLDINGS (HK) LTD., DSV AIR & SEA INC., BBC CHARTERING USA, LLC, and BBC CHARTERING SINGAPORE PTE LTD., [1:20-cv-22471; Southern Florida District].

Gibson, Dunn & Crutcher (plaintiff)
Mandel & Mandel (plaintiff)
Morgan, Lewis & Bochius (defendant)
Akerman (defendant)
Hogan Lovells LLP (defendant)
Leto Law Firm (defendant)
Venable LLP (defendant)
Strook & Strook & Lavan LLP (defendant)

12/14/2022- 299 ORDER ADOPTING  Judge Otazo-Reyes's Report 277 and granting Defendants' Motions to Dismiss for Lack of Personal Jurisdiction 197 198 201 202. Closing Case. Signed by Judge Darrin P. Gayles See attached document for full details. (hs01) (Entered: 12/14/2022)

12/05/2022- 298 Defendant's RESPONSE to 297 Notice of Supplemental Authority by BBC Chartering Singapore PTE Ltd., BBC Chartering USA, LLC, DSV Air & Sea Inc., Goldwind International Holdings (HK) Ltd., Xinjiang Goldwind Science & Technology Co., Ltd.. (Carver, Christopher) (Entered: 12/05/2022)

12/02/2022- 297 Notice of Supplemental Authority re 282 Objections to Report and Recommendations by North American Sugar Industries, Inc. (Attachments: #1 Exhibit (A) Del Valle v Trivago GmbH) (Mandel, David) (Entered: 12/02/2022)

11/02/2022- 296 PAPERLESS ORDER denying 293 Plaintiff North American Sugar Industries Inc.'s Motion for Leave to File a Reply in Further Support of Plaintiff's Objections to Magistrate Judge Otazo-Reyes's Report and Recommendation on Defendants' Motions to Dismiss for Lack of Personal Jurisdiction and denying as moot 294 Plaintiff North American Sugar Industries Inc.'s Motion to File Under Seal Its Unredacted Proposed Reply in Support of Its Objections to Magistrate Judge Otazo-Reyes's Report and Recommendation on Defendants' Motions to Dismiss for Lack of Personal Jurisdiction. Signed by Judge Darrin P. Gayles (hs01) (Entered: 11/02/2022)

Link To Order
Link To Libertad Act Title III Lawsuit Filing Statistics

Excerpts From Order 

This action is one of several that United States nationals, including Plaintiff, filed following the Trump Administration’s activation of Title III of the Cuban Liberty and Democratic Solidarity Act of 1996, 22 U.S.C. § 6021, et seq. (the “Act”). In each of these actions, the plaintiffs seek compensation under the Act from defendants who have profited from using property in Cuba that plaintiffs owned before the Cuban revolution.

Plaintiff’s property in Cuba (the “Confiscated Property”) includes the commercial shipping port, Puerto Carupano. Plaintiff alleges that Defendants trafficked in the Confiscated Property in violation of the Act. In particular, Plaintiff claims that Defendants conspired to transport wind turbine blades from Tianjin, China to Carupano, Cuba for use in a wind farm project (the “Project”). 

Following jurisdictional discovery, a hearing on the Motions, and post-hearing briefing, Judge Otazo-Reyes issued her Report. [ECF No. 277]. The Report made the following findings: 1. The Court does not have personal jurisdiction over DSV US pursuant to Florida Statute § 48.193(1)(a)(1)—the long-arm statute’s business activity prong—because Plaintiff’s claims do not arise from DSV US’s Florida-based business operations; 2. The Court does not have personal jurisdiction over any Defendant pursuant to Florida Statute § 48.193(1)(a)(2)—the long-arm statute’s tortious act prong—because (a) the place of the alleged injury is not in Florida and (b) a substantial aspect of the alleged tort was not committed in Florida; 3. Even if the long-arm statute were satisfied, Defendants do not have minimum contacts with Florida sufficient to satisfy the Due Process clause; 4. The Court does not have personal jurisdiction over Defendants pursuant to Rule 4(k)(2) because exercising jurisdiction would not be consistent with the United States Constitution; and 5. Plaintiff’s claim for conspiracy does not provide a basis for personal jurisdiction over the Defendants because Plaintiff has not established that Defendants committed a tortious act in Florida in furtherance of the alleged conspiracy. Id.

At Least Three Members Of U.S. Congress Visit Cuba. Not One Mentions On Official Web Site, In Media Release. That Sends Unhelpful Message. One In 11th Visit In Twenty Years

At Least Three Members Of The United States Congress Visited Cuba On 10 December 2022.  Not One Mentioned On Their Official Web Site, In Media Release. 

That Sends Unhelpful Message.  Why The Secrecy?

One In 11th Visit In Twenty Years.

As Of 3 January 2023, All Three Will No Longer Represent Majority Party In United States House Of Representatives.

James McGovern (D- 2nd Massachusetts)- Twelve visits to the Republic of Cuba since 2001.
Mark Pocan (D- 2nd Wisconsin)- First Visit.
Troy Carter (D- 2nd Louisiana)- First Visit.

LINK TO LIST OF MEMBERS OF U.S. CONGRESS WHO VISITED REPUBLIC OF CUBA

Image PROVIDED BY GOVERNMENT OF THE REPUBLIC OF CUBA

Cuba's Turquino Coffee Sold At Singapore Changi Airport, By Company With Roots In Morocco. 3.5 Ounces For US$9.79.

At the Singapore Changi Airport there is a Bacha Coffee retail store presenting coffee sourced from the Republic of Cuba.  

A package of twelve (12) Turquino Coffee Bags was priced at 26.17 Singapore Dollars (US$18.98).   

100 grams (.22 pounds or 3.5 ounces) of whole Turquino Coffee Beans was priced at 13.50 Singapore Dollars (US$9.79). 

https://bachacoffee.com/en 

From The Company:  

“Bacha Coffee was founded in Marrakech in 1910, and specialises in 100% Arabica coffees, providing customers with a unique opportunity to travel the world through their cup by exploring harvests from over 30 of the most well-reputed coffee producing countries. Even our distinctive fine blended, fine flavoured and naturally decaffeinated coffees are produced using only 100% Arabica beans to give coffee lovers the widest choice, without ever sacrificing quality or flavour. 

The story of Bacha Coffee begins in the medina of Marrakech, Morocco. Built in 1910, the spectacular Dar el Bacha palace, which means “house of the Pasha”, united the greatest cultural and political minds of the century over glittering pots of “coffee of Arabia” or Arabica, as it is known today. Closed for 60 years, Bacha Coffee has reopened to continue the tradition offering fine 100% Arabica coffees from around the world. Discover more about our locations below. 

You are invited to our Coffee Rooms to enjoy our unique traditional method of coffee preparation and an all day dining menu created to enhance your coffee drinking experience. Shop our collection of over 200 coffees from 33 producing countries around the world in our Coffee Boutiques.

In 2019, Bacha Coffee reopened its original location in Marrakech and has since quickly grown into a global brand, with international coffee rooms and boutiques in Europe and Asia. Today, Bacha Coffee continues to attract today’s philosophers, musicians, politicians, artists, and film stars, as well as a new generation of coffee lovers who are discovering the magic of Bacha Coffee for themselves.”

Another Bank Outside U.S. Reported To Cease Providing Wire Transfers To Cuba. No Reason Provided. Shows Urgent Need For Permitting Correspondent Accounts For Cuba Banks With U.S. Banks.

Established in 1974, Cayman National Corporation Ltd. is the largest financial services company based in the Cayman Islands, providing banking, company management, fund administration and wealth management services to clients locally and around the world, from the Cayman Islands and the Isle of Man, with a representative office in Dubai. Cayman National is publicly traded on the Cayman Islands Stock Exchange.  Cayman National is part of the Republic Group which was established in the Caribbean in 1837 as the Colonial Bank and becoming Barclays Bank of Trinidad and Tobago. The Republic Group is one of the region’s largest and most successful financial institutions.  Cayman National group of companies comprises of: Cayman Islands Cayman National Bank Ltd., Cayman National Fund Services Ltd., Cayman National Securities Ltd.; Isle of Man Cayman National Bank (Isle of Man) Ltd. and Cayman National Trust Company (Isle of Man) Ltd.; Dubai Cayman National (Dubai) Ltd.

29 August 2022: Cayman National Corporation announces plans for merger with Republic Bank (Cayman) Limited George Town, Cayman Islands, August 29, 2022: Cayman National Corporation Ltd. ((CSX: CNC) KY) (“CNC”) has announced that, subject to all regulatory approvals, Cayman National Bank Ltd. (“CNB”) will acquire by way of merger, the banking operations of Republic Bank (Cayman) Limited (“RBKY”). In addition, the securities operations of RBKY will also be merged into the operations of Cayman National Securities Ltd. (“CNS”). CNB and CNS will be the remaining entities following the mergers. 

CNB, CNS, and RBKY are all indirectly owned by Republic Financial Holdings Limited (“RFHL”). The merger of these entities rationalizes operations in the Cayman Islands and creates efficiencies, with no loss of service to clients or displacement of staff. All Caymanians at RBKY will continue to be employed within the Cayman National Group following the completion of the mergers. 

According to Nigel Baptiste, President and Chief Executive Officer of Republic Financial Holdings Limited, “The merger of Republic Bank (Cayman) Limited into the Cayman National Corporation Group, brings the RFHL Group one step closer to streamlining our operations in the Cayman Islands. This move will enable the RFHL Group to enhance the experience of the existing clients of Republic Bank (Cayman) Limited by providing access to a wider array of products and services, and eliminating some of the duplication that currently exists across both entities.” 

Stuart Dack, CEO of CNC, said, “We believe this transaction will add great value to the Cayman National Corporation Group and look forward to welcoming both the RBKY clients and staff of RBKY.” 

RBKY will communicate further information about the proposed transition directly to its clients in the coming weeks. Subject to regulatory approvals, once the merger is completed an announcement will be provided.  

About Cayman National: Established in 1974, Cayman National is the largest financial services company based in the Cayman Islands, providing banking, company management, fund administration, and wealth management services to clients locally and around the world, from the Cayman Islands, and the Isle of Man, with an office also in Dubai. Cayman National is publicly traded on the Cayman Islands Stock Exchange. Cayman National comprises: Cayman National Bank Ltd., Cayman National Fund Services Ltd., Cayman National Securities Ltd., Cayman National Bank (Isle of Man) Limited and Cayman National Trust Company (Isle of Man) Limited, and Cayman National (Dubai) Ltd. 

About Republic Bank (Cayman) Limited: Republic Bank (Cayman) Limited was established in 1992 and currently holds a Trust License and an Unrestricted Class B Banking License under the Banks and Trust Companies Law of the Cayman Islands, as amended. Republic Bank (Cayman) Limited also holds a Mutual Funds License and is a registered Excluded Person for purposes of the Securities Investment Business Law of the Cayman Islands (SIBL[1]EP). 

About RFHL: RFHL is a publicly quoted financial holding company listed on the Trinidad and Tobago Stock Exchange, licensed under the Financial Institutions Act, Chap 79:09 of the Laws of Trinidad and Tobago and has over US$16 billion of total assets. RFHL, along with its twenty four (24) subsidiaries, provides a complete range of commercial banking and related services. These include investment banking, mortgage financing, securities trading and related activities, trustee services, credit card operations, foreign exchange and trade finance services as well as deposit taking and lending operations. Through its subsidiaries and associated companies, RFHL has operations domiciled in Anguilla, Barbados, British Virgin Islands, Cayman Islands, Dominica, Ghana, Grenada, Guyana, St. Lucia, St Kitts and Nevis, St. Maarten, St Vincent and the Grenadines and Suriname in addition to Trinidad and Tobago. 

Recent Administration Policy Changes Background And Issue With Payments 

The Biden-Harris Administration (2021- ) policies and regulations have, thus far, focused upon providing connective and re-connective opportunities to the re-emerging private sector in the Republic of Cuba.    

The remaining challenge to transition Biden-Harris Administration policies from aspirational to operational is recreating a cost-efficient, timely, transparent, and secure mechanism to move funds from the United States to the Republic of Cuba and from the Republic of Cuba to the United States through the authorization of direct correspondent banking.  

On 10 May 2022, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury issued a license authorizing direct investment in and direct financing to a privately-owned company located in the Republic of Cuba owned by a Republic of Cuba national.  Investment funds and dividends, and financing funds and interest/interest/principal payments must currently be transferred through financial institutions located in third countries.  

• Biden-Harris Administration Approves First Equity Investment Since 1960 In A Private Cuban Company May 10, 2022

• 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. May 16, 2022

The issuance of the licenses in May 2022, September 2022, and November 2022 by the OFAC and BIS will result in two-way transfers that are small in value but consistent.  Privately-owned companies located in the Republic of Cuba sending dividend (profit sharing) payments to the source (s) of direct investment and sending interest and principal payments for direct financing.  Republic of Cuba nationals and privately-owned companies located in the Republic of Cuba sending payment(s) for the purchase of an electric vehicle.  

From Mr. John Felder, Founder and Chief Executive Officer of PAE, “Essential for the OFAC to authorize direct correspondent banking so payments for electric vehicles may be transferred by citizens of Cuba with the least amount of cost, least amount of effort, least amount of time, most amount of security, and most amount of transparency.  Payments should not need to move through third-country banks.  Support two-way transactions rather than three-way transactions.”  

A significant transaction hurdle remains receiving payments in the United States from Republic of Cuba nationals residing in the Republic of Cuba who are restricted in the amount of Cuban Pesos they may exchange for convertible currencies, including United States Dollars and Euros.   

The OFAC authorizes United States financial institutions to have correspondent accounts with Cuba-based financial institutions.   

The decision by the Obama-Biden Administration (2009-2017) not to authorize Republic of Cuba-based financial institutions to have correspondent accounts with United States-based financial institutions never made sense- the marketplace, meaning United States-based financial institutions and their customers should determine if they want to engage in direct correspondent banking.  As written, the OFAC regulations today do not provide United States companies with a viable mechanism to avoid the use (and delay and expense) of third-country financial institutions to send or receive authorized payments.  Why one way, but not both ways?    

The use of correspondent accounts is particularly critical to the re-emerging private sectors in Cuba as represented by MSMEs. 

The current requirement to move funds from the Republic of Cuba and to the Republic of Cuba through third-country financial institutions is inefficient, not transparent, and expensive- especially when considering that MSME transactions are often small which makes the fees far more onerous as a percentage of the total transaction. And, now another third-country financial institution has reportedly ceased providing a service of value to United States exporters, importers, and service providers.  

There are discussions within the Bureau of Industry and Security (BIS) of the United States Department of Commerce, OFAC, and United States Department of State to authorize Republic of Cuba-based financial institutions to have correspondent accounts with United States-based financial institutions which would then permit the efficient, transparent, and cost-effective movement of funds for authorized transactions.   

• Facing Extinction Like Javan Rhino? Non-U.S. Banks Engaging With U.S. And Non-U.S. Entities For Authorized Transactions Involving Cuba Due To Risk Of OFAC Penalties. Since 2015, Only Two U.S. Banks. October 17, 2022

LINKS To Related Analyses 

Home Delivery For Electric Scooters To Cuba: As Biden-Harris Administration Expands U.S. Export Opportunities, A U.S. Company Responds Quickly To Customer Requests. Next Correspondent Banking? Dec 4, 2022

First “Made In USA” Electric Scooter Delivered To Female Customer From Holguin, Cuba.  Customer Traveled By Bus 12 Hours To Havana.  E-Scooter Traveled By Air: Miami-Toronto-Havana. Nov 21, 2022

Eleven Months After Denial, Biden-Harris Administration Approves Four-Year License To Export Electric Vehicles To Micro, Small & Medium-Size Enterprises (MSME's) In Cuba Nov 21, 2022

Biden-Harris Administration Re-Engagement With Cuba’s Re-Emerging Private Sector Brings Urgency To Re-Authorization Of Direct Correspondent Banking, U-Turn Transactions. One-Way Does Not Work.  October 06, 2022 

Ten Months After Denial, Biden-Harris Administration Approves Exports Of Electric Motorcycles, Electric Scooters To Cuba Nationals And To Privately-Owned Companies In Cuba October 05, 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  

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

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

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

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

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

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

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

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

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

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

Home Delivery For Electric Scooters To Cuba: As Biden-Harris Administration Expands U.S. Export Opportunities, A U.S. Company Responds Quickly To Customer Requests. Next Correspondent Banking?

“Effective immediately New Delivery Information: All Electric scooter quotes will include Air Freight and HOME Delivery to all of Cuba.”   

On 17 November 2022, Columbia, Maryland-based Premier Automotive Export, Ltd. (PAE) delivered the first electric scooter to a Republic of Cuba national authorized using a license issued by the Bureau of Industry and Security (BIS) of the United States Department of Commerce.  

On 29 November 2022, given marketplace demand, PAE revised its purchase policy by including in the electric scooter quoted price air freight from the United States to the Republic of Cuba and home delivery throughout the Republic of Cuba.  

From Mr. John Felder, Founder and Chief Executive Officer of PAE, “Now we really have the ultimate advantage” to provide value for customers who reside in the Republic of Cuba by responding to their requests.  

LINKS To Related Analyses 

First “Made In USA” Electric Scooter Delivered To Female Customer From Holguin, Cuba.  Customer Traveled By Bus 12 Hours To Havana.  E-Scooter Traveled By Air: Miami-Toronto-Havana. Nov 21, 2022  

Eleven Months After Denial, Biden-Harris Administration Approves Four-Year License To Export Electric Vehicles To Micro, Small & Medium-Size Enterprises (MSME's) In Cuba. Nov 21, 2022  

Background

On 17 November 2022, on the sideline of the Havana International Fair (FIHAV) in the Republic of Cuba, Virgen Ricardo Disotuar, a Republic of Cuba national residing in the city of Holguin, Republic of Cuba, accepted delivery of the first United States-manufactured electric scooter to be exported from the United States to the Republic of Cuba using a license issued by the Bureau of Industry and Security (BIS) of the United States Department of Commerce. 

The customer traveled by bus to Havana from the city of Holguin, Republic of Cuba, on a journey of approximately 422 miles which required approximately twelve (12) hours.  For the return journey by bus, the 190-pound electric scooter, priced at US$2,100.00 with a two-year, 24,000-mile warranty, was partially disassembled and placed in the cargo hold.   

The first BIS-authorized electric scooter was sold in the Republic of Cuba by Columbia, Maryland-based Premier Automotive Export, Ltd. (PAE).  The electric scooter was a Scout model manufactured by Deerfield Beach, Florida-based Life Electric Vehicles, Inc.  Electric scooter pricing ranges from US$1,900.00 to US$2,700.00 depending upon selected options. 

On 28 September 2022, the BIS issued a license to PAE for the export of electric scooters and electric bicycles to Republic of Cuba nationals and to Micro, Small, & Medium-size Enterprises (MSMEs) in the Republic of Cuba.   

PAE is also offering electric bicycles manufactured by Morgantown, West Virginia-based Z Electric Vehicle Corporation.  Replacement parts for electric scooters and electric bicycles are delivered to the Republic of Cuba from Miami, Florida.  Customer Service operations are in Miami and in Havana.  

So PAE would have an electric scooter to display at FIHAV (14 November 2022 to 18 November 2022), one was disassembled and transported as baggage on a regularly-scheduled commercial flight operated by San Antonio, Texas-based Southwest Airlines from Fort Lauderdale, Florida, to Jose Marti International Airport (HAV) in the Republic of Cuba. 

For the delivery of the first Scout to the first customer, with no United States-based air carriers providing direct air freight service from the United States to the Republic of Cuba with conditions to transport an electric scooter, and Jacksonville, Florida-based Crowley Liner Services requiring a payment of approximately US$4,000.00 (minimum for commercial cargo) for a 40-foot container, the electric scooter was transported from the United States to Canada and then from Canada to HAV. 

The 2,968-mile journey by air began at Miami International Airport (MIA) in Miami, Florida, to Toronto Pearson International Airport (YYZ) in Mississauga, Ontario, Canada, and then to HAV.  The one-way cost to transport the electric scooter was US$795.00. The air cargo company transporting the electric scooter was Miami, Florida-based America Cargo Services and the freight forwarder was Miami, Florida-based Malvar Freight Forwarding.  

From order date to delivery, the process was approximately two weeks versus three or more months if ordering a non-United States manufactured electric scooter through Panama or the People’s Republic of China.  

To date, PAE has sold two electric scooters and received US$100.00 deposits for eight (8) electric scooters with additional orders in process.  The deposits and the remaining payments were delivered to PAE in the United States by relatives/friends of the BIS-authorized end users residing in the Republic of Cuba.   

Since 2017, PAE has received five (5) licenses from the BIS to export electric vehicles from the United States to the Republic of Cuba including passenger cars, trucks, motorcycles, scooters, and bicycles along with respective parts.  The first electric passenger sedan was sold in 2017 to the Embassy of Guyana in Havana.   

From Mr. John Felder, Founder and Chief Executive Officer of PAE, “Our focus is to deliver the finest selection of “Made in America” assembled and manufactured vehicles to the citizens of Cuba and to assist with increasing transportation and operational efficiencies to the country’s re-emerging private sector.”  

PAE is also introducing Bidirectional Charge Stations (BCS) to several embassies in Havana.  From Mr. John Felder, Founder and Chief Executive Officer of PAE, “If the 124 embassies located in Havana had a fleet of electric vehicles and installed BCS, there would be less drain upon the national electrical grid.”  BCS can divert power to a residence, office, or the electrical grid. 

According to the government of the Republic of Cuba, there are 5,643 private MSMEs in the Republic of Cuba of which includes sixty-eight (68) Republic of Cuba government-operated entities and fifty-nine non-agricultural cooperatives.  Fifty-two percent (52%) of the entities are conversions of pre-existing enterprises and forty-eight percent (48%) are new enterprises. 

Recent Administration Policy Changes Background And Issue With Payments 

The Biden-Harris Administration (2021- ) policies and regulations have, thus far, focused upon providing connective and re-connective opportunities to the re-emerging private sector in the Republic of Cuba.    

The remaining challenge to transition Biden-Harris Administration policies from aspirational to operational is recreating a cost-efficient, timely, transparent, and secure mechanism to move funds from the United States to the Republic of Cuba and from the Republic of Cuba to the United States through the authorization of direct correspondent banking.  

On 10 May 2022, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury issued a license authorizing direct investment in and direct financing to a privately-owned company located in the Republic of Cuba owned by a Republic of Cuba national.  Investment funds and dividends, and financing funds and interest/interest/principal payments must currently be transferred through financial institutions located in third countries.  

• Biden-Harris Administration Approves First Equity Investment Since 1960 In A Private Cuban Company May 10, 2022

• 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. May 16, 2022

The issuance of the licenses in May 2022, September 2022, and November 2022 by the OFAC and BIS will result in two-way transfers that are small in value but consistent.  Privately-owned companies located in the Republic of Cuba sending dividend (profit sharing) payments to the source (s) of direct investment and sending interest and principal payments for direct financing.  Republic of Cuba nationals and privately-owned companies located in the Republic of Cuba sending payment(s) for the purchase of an electric vehicle.  

From Mr. John Felder, Founder and Chief Executive Officer of PAE, “Essential for the OFAC to authorize direct correspondent banking so payments for electric vehicles may be transferred by citizens of Cuba with the least amount of cost, least amount of effort, least amount of time, most amount of security, and most amount of transparency.  Payments should not need to move through third-country banks.  Support two-way transactions rather than three-way transactions.”  

A significant transaction hurdle remains receiving payments in the United States from Republic of Cuba nationals residing in the Republic of Cuba who are restricted in the amount of Cuban Pesos they may exchange for convertible currencies, including United States Dollars and Euros.   

The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury authorizes United States financial institutions to have correspondent accounts with Cuba-based financial institutions.   

The decision by the Obama-Biden Administration (2009-2017) not to authorize Republic of Cuba-based financial institutions to have correspondent accounts with United States-based financial institutions never made sense- the marketplace, meaning United States-based financial institutions and their customers should determine if they want to engage in direct correspondent banking.  As written, the OFAC regulations today do not provide United States companies with a viable mechanism to avoid the use (and delay and expense) of third-country financial institutions to send or receive authorized payments.  Why one way, but not both ways?    

The use of correspondent accounts is particularly critical to the re-emerging private sectors in Cuba as represented by MSMEs. 

The current requirement to move funds from the Republic of Cuba and to the Republic of Cuba through third-country financial institutions is inefficient, not transparent, and expensive- especially when considering that MSME transactions are often small which makes the fees far more onerous as a percentage of the total transaction.  This is true for vehicles and vehicle parts. 

There are discussions within the BIS, OFAC, and United States Department of State to authorize Republic of Cuba-based financial institutions to have correspondent accounts with United States-based financial institutions which would then permit the efficient, transparent, and cost-effective movement of funds for authorized transactions.   

• Facing Extinction Like Javan Rhino? Non-U.S. Banks Engaging With U.S. And Non-U.S. Entities For Authorized Transactions Involving Cuba Due To Risk Of OFAC Penalties. Since 2015, Only Two U.S. Banks. October 17, 2022

PAE BIS License History 

This is the fifth (5) BIS license issued to PAE for the export of vehicles (gasoline and electric) to the Republic of Cuba, including for use by embassies.  The first BIS license was issued during the Obama-Biden Administration (2009-2017), the second BIS license was issued during the Trump-Pence Administration (2017-2021), and the third, fourth, and fifth BIS licenses were issued during the Biden-Harris Administration.    

From the BIS: “There is a general policy of denial for exports and reexports to Cuba of items subject to the EAR, as described in Section 746.2(b) of the EAR. However, there are exceptions to the general policy of denial, some of which are listed below: … Items necessary for the environmental protection of U.S. and international air quality, waters and coastlines, including items related to renewable energy or energy efficiency, are generally approved.”   

• BIS License D1297862 (11/17/22- 11/30/26)- Electric vehicles and chargers to republic of cuba nationals with the “ULTIMATE CONSIGNEE: Privately owned companies in the Republic of Cuba owned by Cuba Nationals.”

• BIS License D1290656 (9/28/22-9/30/26)- Electric scooters and electric bicycles to individuals of Cuban descent and to Micro, Small and Medium-Size Enterprises (MSMEs) in the Republic of Cuba owned by Republic of Cuba nationals.

• BIS License D1267261 (1/24/22-1/31/26)- Sales only to embassies. Automobiles: Gasoline powered, Pickup trucks with ICE, Electric or Hybrid Engines. Options to include 4x4, 2 or 4 door cab.

• BIS License D1166163 (7/3/19-7/31/23)- Sales only to embassies. Forty-one (41) different parts for gasoline powered vehicles.

• BIS License D1076571 (1/9/17-1/31/21)- To export Nissan Leaf electric vehicle and Clipper Creek level II 40-amp electric charger with J-1772 universal charging connector to embassy of Guyana in Havana, Republic of Cuba. LINK

• BIS License Exception (2017/2018)- Four (4) electric scooters. A license exception is a general authorization to export or reexport certain items without a license under stated conditions. Only the license exceptions, or portions thereof, listed Section 746.2(a)(1) of the EAR are available for Cuba…. Support for the Cuban People: License Exception Support for the Cuban People (SCP) “§ 740.21 Support for the Cuban People (SCP). (a) Introduction. This License Exception authorizes certain exports and reexports to Cuba that are intended to support the Cuban people by improving their living conditions and supporting independent economic activity; strengthening civil society in Cuba; and improving the free flow of information to, from, and among the Cuban people. (b) Improving living conditions and supporting independent economic activity.…. (1) Items for use by the Cuban private sector for private sector economic activities… (2) Items sold directly to individuals in Cuba for their personal use or their immediate family's personal use,”

LINKS To Related Analyses 

First “Made In USA” Electric Scooter Delivered To Female Customer From Holguin, Cuba.  Customer Traveled By Bus 12 Hours To Havana.  E-Scooter Traveled By Air: Miami-Toronto-Havana. Nov 21, 2022

Eleven Months After Denial, Biden-Harris Administration Approves Four-Year License To Export Electric Vehicles To Micro, Small & Medium-Size Enterprises (MSME's) In Cuba Nov 21, 2022

Biden-Harris Administration Re-Engagement With Cuba’s Re-Emerging Private Sector Brings Urgency To Re-Authorization Of Direct Correspondent Banking, U-Turn Transactions. One-Way Does Not Work.  October 06, 2022 

Ten Months After Denial, Biden-Harris Administration Approves Exports Of Electric Motorcycles, Electric Scooters To Cuba Nationals And To Privately-Owned Companies In Cuba October 05, 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  

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

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

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

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

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

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

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

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

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

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