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The Bureau of Industry and Security (BIS) has published a final rule amending the Export Administration Regulations (EAR) to further restrict exports and reexports of items to Cuba. The final rule amends the Cuba licensing policy in the EAR to establish a general rule of denial for leases of aircraft to Cuban state-owned airlines. In addition, this rule makes the following changes:

  • This rule amends License Exception Aircraft, Vessels and Spacecraft (AVS) to clarify that aircraft and vessels are not eligible for the license exception if they are leased to or charted by a national of Cuba or State Sponsor of Terrorism.
  • The rule establishes a general 10-percent de minimis level for Cuba. Now, a BIS license or an applicable license exception is required for the reexport to Cuba of foreign-made items that contain greater than 10 percent of U.S.-origin content or, when § 734.4(a) applies, contains any U.S.-origin content.
  • License Exception Support for the Cuban People (SCP) to make the Cuban government and communist party ineligible for certain donations and removes an authorization for promotional items that generally benefits the Cuban Government. This rule will exclude donations to organizations administered or controlled by the Cuban government or communist party.
  • The scope of telecommunication items that the Cuban government may receive without a license is also clarified. The rule now explains that License Exception SCP is limited to eligible items for the creation and upgrades of telecommunications infrastructure to improve the free flow of information to, from, and among the Cuban people. For infrastructure items that would be used to connect specific end users (i.e., nonbackbone items), those items may be used to connect individual Cubans or the Cuban private sector only. A license is required for the export or reexport to Cuba of items for telecommunications infrastructure that would be used to connect other specific end users (e.g., Cuban government ministries and state-owned hotels).

Federal Register Notice: https://www.govinfo.gov/content/pkg/FR-2019-10-21/pdf/2019-22876.pdf