New US regulatory measures changes facilitate credits for Cuban products. No mention is made about the US dlls.
Cuba USA

New US regulatory measures changes facilitate credits for Cuban products. No mention is made about the US dlls.


by Rosa Miriam Elizalde
source Cubadebate
translation Cuba - Network in Defense of Humanity

The new Regulations announced by the United States eliminates thecondition of payment in advance for export to Cuba of products that are not agricultural but maintain restrictions on the use of the dollar; not explaining how these credits would be handled in the Island.

The regulation will be in force this Wednesday and will impact the regime of exports and authorized air travel by the US to Cuba. This third package of measures is set up by Washington since the announcement of normalizing relations between the two countries on December 17 of 2014.Among the most important measures is the permission to grant credits to Cuba by which the country could acquire products already authorized and recognizing the State company as a commercial institution although
limiting certain services such as rental of planes and other articles according to specifications listed by the Department of the Treasury and Trade.

(Commerce and Treasury Announce Further Amendments to the Cuba Sanctions Regulations.

Today’s decision confirms what the Cuban Government has announced since the speech of December 17: President Barack Obama can do more and has faculties he has yet to use. If he does so he prevents turning
back that policy, he has stated that he wants.

However, the regulations do not mention the use of the dollar for Cuba, a circumstance that historically has caused costly operation for allowed transactions, both for the Island as the United States and forces payment with a third country currency.

As US experts have informed, Obama could allow the use of the dollar in Cuban international transactions or – not coded in the laws of the blockade – to allow these transactions through the US banking System and allow Cuban companies (banks, companies) to open accounts in United States banks. However, regarding this possibility there has been no announcement by both US departments.

The regulation do not also completely free sectors of the US economy from the already established restriction; as done by Barack Obama in telecommunications that allows almost everything: purchase, sale,
investment, joint companies, etc.

The announcement, in practice, concentrates US exports but does not recognize imports from Cuba except in some sectors of the private sector, a minority in the Island. This, in essence is re affirmed in
the first package of regulations announced by the president after D17.

Also still in force is travel restrictions of people to people that can only be made by groups in a program previously agreed upon, tended by representatives of the organization that manages these visits and
can vouch that there has been no “violation” of the law.

These measure could exclusively “help the Cuban people” alienating the concept of “people” to that of “Government” according to the rhetoric of the United States Government that warns of the change of intentions of the previous administrations; it is just a change of tactics said the Under Secretary of State, Roberta Jacobson in Havana.

In line with this strategy, Commerce Secretary, Penny Pritzker said these regulations will also facilitate exports to strengthen civil society in Cuba (non state sector) and improve communication with and among the Cubans”.
"These regulatory changes will also facilitate exports that will help strengthen civil society in Cuba." https://t.co/ueHgIvohal
"These regulatory changes will also facilitate exports that will help strengthen civil society in Cuba."

In the mean time Treasury secretary Jack Lew commented that the intention of these measures is “to facilitate the free flow of information between Cubans and US citizens and we will continue taking the necessary steps to help the Cuban people to achieve the political and economic freedom it deserves”. The spokesman for the Council of National Security (NSC), Ted Price made it clear that the “US is doing its part to eliminate the obstacles for the Cuban people”.

Secretary Lew: “United States is committed to empowering and enabling economic advancements for the Cuban people”
Financial transactions and exports

Specifically the joint will of the Departments of Treasury and Commerce authorizes commercial US banks (institutions in the US, or of the US in third countries and of third countries in the US) to provide finances – including letters of credit – for authorized exports except agricultural sales that should continue being paid in advance, as regulated by the laws of the blockade of the Island.

It also authorizes travel related to market research, commercial marketing, negotiations of contracts and sale, accompanied cargo, installations, rental or offers of services in Cuba related to products authorized for exports.

The regulation establishes a general policy of approval of licenses for:

• Exports of goods and information programs for organization of human Rights, nongovernmental individuals organizations and institution that promote “independent” activity in Cuba;
• Telecommunication equipment to improve communications towards, from and with the Cuban people;
• Exports and renewal of exports of some agricultural equipment noteligible for license exemption of agricultural goods, such as pesticides and herbicides (not coded under the blockade);
• Exports of the necessary equipment for safety in civilian aviation and operational security of international comercial flights, including planes rented to companies of state property that is coherent with the agreement of Civilian Aviation approved at first. The US will allow exports to Cuba of a specific license for products “analyzed individually” including those that satisfy the needs of the Cuban people, purchased by state institutions and organizations of the Cuban government that supplies goods and services to the Cuban people. The range of authorized products is the following:
• Agricultural production
• Artistic products (includes creation of public works, works of historical and cultural preservation)
• Education
• Food processing
• Preparation for disasters, aid and response
• Public Health
• Construction and repair of residential housing
• Public Transportation
• Construction of infrastructure that directly benefits the Cuban people (for example, installation for treatment of the public supply of water and supply of energy for the public in general).

The measures also provides a general policy of denial of these products for government use, by agencies and other Cuban government institution that could generate incomes for the States, such as the industry of tourism and those linked to the extraction and production of minerals and other raw materials. Also those that cannot be benefitted are the military, the police and intelligence institutions of the country.

The regulations are subscribed jointly in the Office of Control of Foreigner Assets (OFAC) of the Department of the Treasury and the Bureau of Industry and Security of the Department of Commerce that supervises control of exports. Dispositions for trips to the Island.

The package of measures announced also express the intention of aiding air transportation as well as the rental of planes for purposes already authorized in previous regulations of the United States government.

Also affirmed is the authorization of entrance of blockaded space that is subject generally to the deposit made to suppliers and whole sale institutions in anticipation of resale. Also the shared code and agreements of rentals for services of air transportation of passengers – does not exclude Cuban nationals – is an agreement in accordance with the agreements to facilitate all kinds of travel that had been negotiations by the two countries.

It also authorizes the staff that operates or offers services to ships and airplanes to make negotiations related to trips to Cuba and other facilities for the temporal visit of planes and ships authorized by the Deparment of Commerce to transport passengers between Cuba and the US.

Under the general policy of license approvals of OFAC it is not possible to report to Cuba and make trips of professionals and artistic production, of information or materials of information for export, import and transmission. Allowed is the recording or production of communication media (such as films and television programs), recording music and creation of art works in Cuba by persons habitually employed or with professional experience in professional media or artistic productions.

The regulation approves payment through contracts for the creation, diffusion or modification or improvement of information material. It allows employment of Cuban nationals and sending bonuses or payments.
It also aids trips to organize meetings and professional conferences in Cuba (the previous general license only authorized US citizens attending events).

Finally regarding travel it allows those related to semi professional and amateur competitions of the International Federation of Sports that includes negotiations for that purpose and their corresponding public attendance, hospitals, workshops and other athletic and non athletic competitions as well as exhibitions in Cuba.

OFAC also eliminates requirements that winning funds obtained in certain events should be donated to specific organizations and that US travellers are obliged to participate in those events.

In the category of humanitarian projects it authorizes and enlarges the list and adds preparation and response to disasters.




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