International Trade Law News

The Treasury Department's Office of Foreign Assets Control (OFAC) today issued its monthly report of civil penalties imposed on companies and individuals for allegedly violating the sanctions regimes administered by OFAC.

OFAC's monthly penalty report indicates that the agency settled three cases involving corporations and three cases against individuals. The following is a summary of the settlements:

Entities:

• Fleet National Bank, which was acquired by Bank of America in 2005, remitted $1,337.50 to settle allegations of a violation of the former Libyan Sanctions Regulations by the Montevideo, Uruguay branch office of Fleet. The alleged violation by the Fleet branch occurred in April 2003 and prior to the June 2005 merger of Fleet into Bank of America. This matter was voluntarily disclosed to OFAC.
  

• Citigroup, N.A. remitted $16,250 to settle allegations of violations of the Cuban Assets Control Regulations. OFAC alleged that in October 2004 Citigroup acted without an OFAC license or outside the scope of its license by creating a banker’s acceptance for goods shipped by a Cuban carrier. Citigroup voluntarily disclosed this matter to OFAC.

• America Servi Express, Inc. (“ASE”), a Fort Lauderdale, Florida provider of financial and other services, was assessed a $2,465.00 civil monetary for allegedly violating the Narcotics Trafficking Sanctions Regulations by initiating a wire transfer to a U.S. life insurance company in payment of a premium on a policy issued on the life of a Specially Designated Narcotics Trafficker. ASE did not voluntarily disclose this matter to OFAC.
  

• OFAC imposed a $6,000 penalty on an individual for allegedly dealing in property in which Cuba has an interest. Specifically, the person allegedly engaged in financial transaction with Cuba, including the receipt of an payment for goods and services. This penalty amount is one of the largest recent penalties imposed by OFAC on an individual associated with the Cuban Assets Control Regulations.

• OFAC settled one case involving the purchase of Cuban-cigars offered for sale on the internet for $282.50.

• OFAC also settled a case for $1,063 against an individual that dealt in services with Cubans that were incident to the making of a commercial.
  

Labels: Cuba, OFAC, Sanctions

The Treasury Department's Office of Foreign Assets Control (OFAC) has issued its monthly report of civil penalties imposed on companies and individuals for allegedly violating the sanctions regimes administered by OFAC.

OFAC's monthly penalty report indicates that the agency settled five cases involving corporations and six cases against persons. The following is a summary of the settlements:

Entities:

• Key Bank N.A., Cleveland, Ohio paid $200,000 to settle allegations of violations of the Iranian Transaction Regulations occurring between 2002 and August 2004. OFAC alleged that Key Bank acted without an OFAC license or outside the scope of its license by operating accounts for an entity and a person located in Iran. Key Bank did not voluntarily disclose this matter to OFAC.

• BankAtlantic of Fort Lauderdale, Florida remitted $7,500 to settle allegations of possible violations of the Cuban Assets Control Regulations occurring in July 2004. OFAC alleged that BankAtlantic failed to block a payment in which the Government of Cuba had an interest. OFAC noted that BankAtlantic Bank voluntarily disclosed this matter, cooperated in the investigation and has implemented corrective measures and improvements to its OFAC compliance program.

• Buehler Ltd., a Lake Bluff, Illinois manufacturer of scientific equipment and supplies for use in materials analysis, has remitted $20,000 to settle allegations of violations of the Iranian Transactions Regulations occurring between September 2002 and November 2003. OFAC alleged that Buehler acted without an OFAC license or outside the scope of its license by exporting technological equipment to entities in Iran. OFAC indicated that Buehler did not voluntarily disclose the matter to OFAC, but cooperated in the investigation.

• La Salle Bank Midwest, N.A. of Chicago, Illinois remitted $5,500 on behalf of its affiliate Standard Federal Bank to settle allegations of violations of the Iranian Transactions Regulations occurring February 2002. OFAC alleged that Standard Bank acted without an OFAC license or outside the scope of its license by initiating a funds transfers destined for a bank owned or controlled by the Government of Iran. Standard Bank did not voluntarily disclose this matter to OFAC.

• OFAC imposed a $941 civil penalty on RMO, Inc., a Denver, Colorado based manufacturer of orthodontic equipment, for violating the Cuban Assets Control Regulations. OFAC alleged that in June 2005 RMO, Inc. dealt in property in which a Cuba or a Cuban national had an interest by initiating a funds transfer involving travel to Cuba. OFAC originally proposed a $1,711 penalty on RMO, but the penalty amount was reduced after the company advised OFAC that the employee responsible for the violation was terminated , the company is instituting a compliance program for its employees and that this was RMO's first offense. RMO, Inc. did not voluntarily disclose this matter to OFAC.
  

• OFAC settled five cases involving the purchase of Cuban-cigars offered for sale on the internet for amounts ranging from $456 to $5,213. The average settlement amount was $1,848.
  

• OFAC also settled a case for $1,000 against an individual for travel-related transactions incident to Travel with Cuba that involved the receipt of and payment for goods and services. According to OFAC, the individual traveled to and from Cuba via third countries.

Labels: Cuba, OFAC, Sanctions; Iran

As has been widely reported, Fidel Castro announced today that he will not seek reelection to serve as president and commander-in-chief of Cuba, after serving for nearly 50 years as the country's leader. The English translation of Castro's resignation letter that was published in Cuba's Granma newspaper can be found here.

As the Miami Herald points out Castro's decision to step down is unlikely to change U.S. policy towards Cuba in the short term and any significant policy changes are unlikely to occur until Castro's death.

Meanwhile, Reuters recently reported that U.S. producers sold $437.5 million in food to Cuba in 2007, after falling the previous two years. Although the article notes that "Alimport president Pedro Alvarez said the increased value of Cuban purchases last year reflect higher world food prices, not greater volume" and that Cuba's trade with the U.S. is "is flat."

Update: Not surprisingly, Deputy Secretary of State John Negroponte said this morning said that the U.S. will not lift the embargo on Cuba "anytime soon".

Update 2: The statement by Secretary of Commerce Carlos Gutierrez, who was born in Cuba and serves as Co-Chair of the Commission for Assistance to a Free Cuba, can be found here.

Update 3: The Miami Herald's "Preparing for Cuba" series, which examines prospective post-Cuba embargo business possibilities can be found here.

Update 4: New York Times Wednesday: Castro Circle Likely to Hold Power After His Resignation.

Labels: Cuba

Pedro Alvarez, the Chairman of Empresa Comercializadora de Alimentos, Cuba's main food importing entity, said last week that the U.S. remains Cuba's largest supplier of food and agricultural products. Alvarez said that in 2007, Cuba purchased more than $600 million in agricultural products from the U.S., which is approximately the same amount purchased from the U.S. in 2006 .

Alvarez's comments came during a joint news conference last week with California Secretary of Food and Agriculture A.G. Kawamura, who led the State of California's first agricultural trade mission to Cuba from January 21 – 24, 2008.

California sold about $700,000 in licensed agricultural products to Cuba in 2007. California officials predict that the figure could be increased to $180 million.

The Commerce Department's Bureau of Industry and Security oversees the export of agricultural commodities to Cuba under the authority of the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA).

Labels: BIS, Cuba

The Treasury Department's Office of Foreign Assets Control (OFAC) today issued a final rule in the Federal Register expanding the scope of activities allowed under the general licenses for publishing activities contained in OFAC's Cuba, Sudan, Iran and Burma sanctions regulations.

As a result of today's final rule, the general licenses relating to publishing activities permit the export and inclusion of embedded software necessary for reading, browsing, navigating or searching "written publications". In order to be eligible for the general licenses for Iran and Sudan, however, the embedded software must be classified as EAR99 under the Export Administration Regulations. The general licenses for Cuba and Burma now permit the export of such software if "the exportation is licensed or otherwise authorized by the Department of Commerce under the provisions of the EAR".

The final rule also amends the various sanctions regulations by clarifying that the term "written publications'' used in the general licenses includes manuscripts, books, journals and newspapers even if they are published solely in electronic format.

OFAC's amendment of the Iran and Sudan general licenses relating to the export of embedded software for reading or browsing written publications does not appear to be a significant change in licensing policy. This is because even the most basic software products for reading or searching written publications are not classified as EAR99. For example, Adobe's on-line product matrix confirms that Acrobat eBook Reader and Adobe Reader are classified as ECCN 5D992, since they contain encryption algorithms. Similarly, Microsoft's Internet Explorer is also classified as ECCN 5D992. Even Mozilla's Firefox is classified as ECCN 5D002.

Labels: Burma/Myanmar, Cuba, OFAC, Sanctions; Iran, Sanctions; Sudan

The Council on Foreign Relations recently hosted an online debate on sanctions policy between Simon Cox, an economics correspondent for The Economist, and Jake Colvin of USA*Engage. To read the debate, start at the bottom of the site and work your way up.

Labels: Cuba, Sanctions, Sanctions; Iran, Sanctions; Sudan

In connection with debate on legislation to extend agricultural programs (H.R. 2419), the U.S. House of Representatives failed to pass, by a vote of 185-245, an amendment offered by Ways and Means Committee Chairman Rangel (D-NY) to modify the "cash in advance" restrictions on U.S. agricultural sales to Cuba under the Trade Sanctions Reform Act of 2000 (TSRA). The amendment would have changed the definition of "cash in advance" to mean payment prior to the transfer of title to the purchaser and the the release of control of the product to the purchaser. Since February 2005, OFAC has taken the position that payment by the Cuban buyers must be made prior to shipment of the goods from the U.S.

The proposed amendment would have also authorized direct transfers between Cuban banks and U.S. banks and allow visas to be issued to Cuban nationals to conduct activities related to purchasing U.S. agricultural goods.

Labels: Congress, Cuba

The Securities and Exchange Commission (SEC) has "temporarily suspended" the controversial Web tool that was recently posted on the agency's Web site to permit investors to obtain information from company disclosure documents about their business interests in Cuba, Iran, Sudan, Syrian and North Korea, countries that have been designated by the U.S. as "State Sponsors of Terrorism".

In a press release, SEC Chairman Christopher Cox said:

To address these and related concerns, we are temporarily suspending the availability of the web tool while it undergoes reconstruction. We will work to improve the web tool so that it meets the various concerns that have been expressed. Alternatively, our staff is considering whether the use of interactive data tags applied by companies themselves could permit investors, analysts and others to easily discover this disclosure without need of an SEC-provided web tool at all. In the interim, the companies' disclosure regarding their business contacts in the five nations will continue to be available through the SEC's EDGAR database, and findable using our new full-text search capability.

Labels: Cuba, Sanctions; Iran, Sanctions; Sudan, SEC

In response to a request by the Senate Finance Committee, the U.S. International Trade Commission last week issued a report entitled "U.S. Agricultural Sales to Cuba: Certain Economic Effects of U.S. Restrictions".

The ITC's report provides an overview of Cuba's purchases of agricultural products since 2000, an analysis of the effects that U.S. restrictions on trade and travel to Cuba by U.S. citizens have on those Cuban purchases and estimates of likely U.S. agricultural sales if such restrictions were lifted.

The major findings trade-related findings of the report include:

• Following implementation of the Trade Sanctions Reform and Export Enhancement Act (TSRA) of 2000, U.S. exports grew rapidly and by 2004 the U.S. was the largest supplier of agricultural products to Cuba.
  
• However, following OFAC's February 2005 policy change that required the seller to receive payment from the Cuban buyer prior to the departure of the vessel carrying the goods to Cuba, the value of Cuban agricultural imports from the United States dropped by 10% in 2005 and a further 4% in 2006.
• U.S. regulations, such as those requiring the Cuban government to pay for U.S. agriculture products in cash or through letters of credit drawn on third-country banks, raise the cost of U.S. goods for Cubans and likely limit U.S. sales.
  
• The ITC found that OFAC appears to have restricted business travel to and from Cuba that is necessary for U.S. exporters to effectuate sales. Particularly important are Cuban officials traveling to the United States to inspect U.S. processing facilities, U.S. port facilities, fresh produce, live animals and other products subject to sanitary and phytosanitary standards. For many of these products, the ITC found that restricting business travel effectively bars U.S. sales to Cuba.
• OFAC restrictions on maritime shipping of U.S. products to Cuba significantly increased
  freight charges for cargo to Cuba above freight charges to other Caribbean destinations.
• Overall, the ITC found that all U.S. agricultural commodity sectors would likely benefit from the lifting of the financing restrictions on U.S. agricultural exports to Cuba.

Labels: Cuba, ITC, OFAC

On July 11, 2007, the Treasury Department's Office of Foreign Assets Control (OFAC) issued its monthly report of civil penalties imposed on companies and individuals for allegedly violating the sanctions regimes administered by OFAC.

OFAC's monthly report indicates that the agency settled three cases involving corporations and three cases against persons. The following is a summary of the settlements:

Entities:

• LogicaCMG Inc. paid $220,000.00 to settle allegations of violations of the Cuban Assets Control Regulations by a predecessor corporation, CMG Telecommunications, Inc. (CMG), occurring during 2001. OFAC alleged that CMG procured, assembled, and exported a computer system, as well as provided technical support for the system after export, with knowledge that the goods and services were ultimately destined for Cuba and that such exports to Cuba were prohibited. CMG did not have an OFAC license to engage in these transactions and CMG did not voluntarily disclose this matter to OFAC.

This is the third penalty imposed on CMG as a result of prohibited transactions with Cuba. As we previously reported, in May 2007 LogicaCMG, Inc. paid $99,000 to the Bureau of Industry and Security to settle allegations that CMG violated the Export Administration Regulations by making an unlicensed export of telecommunications equipment to Cuba via Panama.

In addition, in April 2007, LogicaCMG pled guilty in federal court for violating the International Emergency Economic Powers Act for the unlicensed reexport from Panama to Cuba and was ordered to pay a $50,000 criminal fine.

• Gibson Overseas, Inc. paid $1,357 to settle allegations of violations of the Iranian Transactions Regulations occurring during January 2006. OFAC alleged that Gibson used an Iranian vessel to ship goods from China to Dubai in violation of 31 C.F.R. § 560.206, which prohibits transactions or dealings in goods or services of Iranian origin. Gibson did not voluntarily disclose this matter to OFAC.

• American Bankers Life Assurance Company of Florida remitted $1,271.50 to settle allegations of violations of the Narcotics Trafficking Sanctions Regulations occurring between October – December 2003. OFAC alleged that the insurance company processed premium payments on insurance policies on the lives of two persons who are named as Specially Designated Narcotics Traffickers. ABLAC did not voluntarily disclose this matter to OFAC.
  

• One individual agreed to a settlement totaling $10,000 for alleged travel-related transactions incident to travel to Cuba. Specifically, OFAC alleged that from May through December 2002 the individual engaged in prohibited travel-related transactions, including the purchase of food and lodging in Cuba. The individual traveled to and from Cuba through a third country. (This is one the largest penalties imposed by OFAC on an individual for travel-related violations of the Cuban Assets Control Regulations.)
  

• Another individual agreed to pay $2,892.75 to settle charges of allegedly dealing in property in which Cuba or a Cuban national had an interest. OFAC alleged that in 2004, 2005 and 2006 the individual purchased Cuban-origin cigars on six separate occasions that were offered for sale on the Internet. The individual did not voluntarily disclose this matter to OFAC.

• An individual was assessed a penalty totaling $200.00 for making four payments in 2003 to purchase of Cuban-origin cigars offered for sale on the Internet. The individual did not voluntarily disclose this matter to OFAC.

Labels: Cuba, OFAC, Sanctions, Sanctions; Iran

An article published yesterday on Newsweek magazine's Daily Edition states that Michael Moore's production company credentialed the subjects of his film that he took to Cuba as journalists.

The article states:

The multimillionaire-dollar question is: under what auspices did Moore get his people to Cuba? Moore, producer Harvey Weinstein and attorney David Boies claim that the group traveled on a legal “journalistic endeavor,” presumably under a license granted to members of the press who can provide evidence to the Treasury that they are regularly employed by a news organization. (Moore's spokesman, Chris Lehane, insists that Moore's group traveled legally, yet he wouldn't say if they actually attained any license from Treasury.) But the subjects of “Sicko” aren’t "regularly employeed" as journalists. NEWSWEEK has learned that Moore’s production company, Dog Eat Dog productions, credentialed the interviewees itself—in essence, knighting them as journalists—and then flew them from Miami to Cuba on a charter flight reserved for licensed travelers. Is that good enough? “Moore is not allowed to travel with companions unless they’re also licensed by the Treasury to travel to Cuba as journalists,” says David Cibrian, international trade attorney at Strasburger & Price. “ Journalists don’t bring people from elsewhere to interview in Cuba. People go to Cuba to interview Cubans.”

One final mystery is what documentation Moore’s party presented to U.S. Customs and Border Protection personnel in order to legally board a flight from Miami. Treasury claims, in a May letter to Moore, that it has “no record” of issuing the necessary paperwork for Moore to travel. But Angel Marques, public affairs liaison in the Miami Office of Customs and Border Protection, says no one gets on a flight from Miami to Cuba without showing a Treasury license. “I don’t know what charter service Moore used, but it’s safe to say that he would have been asked for paperwork before boarding,” Marques says.

Labels: Cuba, OFAC

The Miami Herald reports today that any changes to the U.S. embargo on Cuba are unlikely to occur during the current session of Congress. The article notes that after "Democrats seized control of Congress last November, the Bush administration's tough policies on Cuba appeared in trouble. Not anymore." The article further states that:

Since the elections, more than a dozen bills have been introduced to ease the U.S. sanctions, from relaxing or lifting travel restrictions to making it easier to export agricultural goods.

But the new Democratic leadership -- whose Republican predecessors had helped ensure that no anti-sanctions initiatives reached President Bush's desk -- has not pushed those bills and is unlikely to do so soon, Democratic congressional staffers and activists on both sides of the issue say.

The reasons include more pressing priorities like Iraq and immigration reform and an unusually early start of the presidential campaign -- with Florida figuring prominently, given its early primary date. Also, many Democrats prefer to wait for the political picture in Havana to clear up before moving to change policy, the staffers and activists say.

Labels: Cuba, Sanctions

The AP has published an article on the wide variety of U.S. products that are readily available in Cuba. The article also discusses the legal and illegal ways U.S. products end up in Cuba.

Labels: Cuba, Sanctions

Michael Moore's response to OFAC's May 2, 2007 letter requesting information on his recent trip to Cuba can be found be found at the following link on his website.

Somehow, I don't think that OFAC will find his letter to be responsive, particularly since he requested OFAC to terminate the investigation, rather than answering the specific questions asked by OFAC.

Labels: Cuba, OFAC

The Office of Foreign Assets Control is investigating whether director Michael Moore violated U.S. law by traveling to Cuba in March 2007. OFAC's letter to Mr. Moore, which requests information on his trip and seeks to determine whether he qualifies as a full-time journalist (and therefore eligible for a general license), can be found on the Smoking Gun's website.

Labels: Cuba

The Bureau of Industry and Security (BIS) recently issued two press releases announcing the imposition of civil penalties for violations of the Export Administration Regulations (EAR).

In the first case, BIS announced that it had imposed a civil penalty of $220,000 on America, Inc., the U.S. subsidiary of Japan's YamadaYamada Corporation, for exporting diaphragm pumps to Taiwan, Singapore, Brazil and Ecuador without the required export licenses. BIS alleged that, between 2001 and 2005, Yamada committed a total of 26 violations of the EAR. Specifically, BIS found that Yamada committed 10 violations of exporting diaphragm pumps to the four countries, six violations of exporting the pumps with knowledge that violations would occur and 10 violations by making false statements on export control documents.

In the second case, BIS announced that LogicaCMG, Inc. agreed to pay a $99,000 civil penalty to settle nine charges that predecessor and affiliated entities CMG Telecommunications of Nashua, New Hampshire and CMG Wireless Data Solutions of Brazil violated the EAR in connection with unlicensed export of telecommunications equipment through Panama to Cuba.

BIS alleged that from July 2001 through October 2001 CMG Telecommunications and CMG Wireless Data Solutions conspired to export and did export a single node short message service center (SMSC) from the U.S. through Panama for ultimate delivery to an end-user in Cuba without the required export license. The equipment was controlled for national security, anti-terrorism and encryption item reasons. BIS further charged that CMG Telecommunications took actions to evade the provisions of the EAR by concealing the fact that Cuba was the country of ultimate destination and acted with knowledge of a violation when it transmitted technical data to Cuba by e-mail to assist in the installation of the SMSC without getting the required export license.

Labels: BIS, Cuba, Export Controls

BAWAG P.S.K., an Austrian commercial bank that will soon be majority owned by New York-based Cerberus Capital Management, recently announced that it has reversed course and will revoke its previous decision to close accounts held by Cuban nationals.

The bank has been wrestling with the scope of U.S. sanctions ever since Cerberus announced that it would purchase the bank at the end of 2006. On April 13, 2007, BAWAG P.S.K. stated that as a result of its new ownership, the bank would be required to "terminate business relationships with clients of Cuban nationality" in order to comply with "American laws on economic sanctions administered by the U.S. Department of Treasury's Office of Foreign Assets Control."

On April 15th, the bank issued a statement that it "is not terminating or limiting its business relations with Iranian citizens in Austria" and the "the claims to this effect in the Sunday edition of the daily newspaper "Österreich" are misleading."

On April 25th, the bank "promised that in connection with the termination of the business relationships with Cuban Nationals no fees or charges will be levied from the affected customers. In addition to that BAWAG P.S.K. will also reimburse any costs incurred incurred in connection with the transfer of an account to another banking institution."

At the end of April, the Government of Austria announced that it commenced administrative criminal procedures against BAWAG P.S.K. for refusing to deal with Cuban customers. The bank subsequently sought and apparently obtained from OFAC a license permitting it to conduct business with Cuban nationals in Austria.

In its most recent announcement, the bank stated that it "offers its apologies to its customers for the problems and irritations in connection with the measures taken earlier. All costs eventually incurred by the customers concerned will of course be reimbursed" and that "the management board wishes to stress that the numerous critical statements of public and private parties received by it and addressing the matter in the last weeks were taken very seriously by BAWAG P.S.K. and were seen as support in the decision process."

Labels: Cuba, OFAC, Sanctions

Pursuant to a request made by the Senate Finance Committee, the U.S. International Trade Commission (ITC) will hold a hearing on May 1, 2007 in connection with its investigation on U.S. Agricultural Sales to Cuba: Certain Economic Effects of U.S. Restrictions.

Representatives from the U.S. Cuba Trade Association, U.S.-Cuba Trade and Economic Council, Inc., Port of Corpus Christi, North Dakota Department of Agriculture, USA Rice Federation and the American Society of Travel Agents are scheduled to testify at the hearing.

The ITC intends to submit its report to the Senate Finance Committee by June 29, 2007.

Labels: Cuba, ITC

The U.S. Attorney for the District of New Hampshire announced that LogicaCMG, Inc., the U.S. subsidiary of UK-based Logica CMG PLC, pleaded guilty on April 25, 2007 to illegally causing computer servers to be exported to Cuba. After accepting the guilty plea, the company was ordered to pay a $50,000 fine.

The violation to which LogicaCMG pleaded guilty involved the unlicensed export to Cuba in 2001 of a computer server used for enabling and processing text messaging over a wireless telecommunications network. The export was allegedly caused by LogicaCMG’s corporate predecessor, MG Telecommunications, Inc., which had offices in New Hampshire. CMG maintained a sister company in Brazil.

According to the U.S. attorney's office, in August 2001, CMG management and other personnel employed in the Nashua, New Hampshire facility assisted CMG's Brazil operation in filling an order for the server to be shipped to a customer in Panama and thereafter to be shipped by the customer to an end-user in Cuba and to be installed in Havana, Cuba. The U.S. Government alleged that CMG obtained the required hardware, configured it and installed the operating system in its Nashua facility, and shipped the server to the customer in Panama knowing it would ultimately be delivered to Cuba.

Logica acquired CMG in 2002 and therefore assumed liability for the actions of CMG.

Labels: BIS, Cuba, Export Controls

The recently issued June issue of Cigar Aficionado magazine is dedicated to Cuba.

According to the magazine's website, the issue "delves into the island nation from all angles. We sit down with top U.S. politicians, both Democrat and Republican, as well as government insiders, from Cuba and the United States, to examine the policy divide that splits Washington along party lines and two nations separated by a 90-mile stretch of sea."

"We follow that up with a comprehensive travel guide that will give any visitor the ins and outs of the island. We find the best hotels in Cuba; profile the home-style cooking that dominates the restaurant scene; lend a helping hand in navigating Havana's cigar shops; outline the increased travel restrictions and the channels that sidestep some of them; and highlight a new lineup of star cigars on the market."

Before traveling to Cuba or buying Cuban cigars, however, U.S. persons should be sure to review the Cuba sanctions page on the Treasury Department's Office of Foreign Assets Control (OFAC), which sets for the current rules and regulations on traveling to Cuba, including the rules applicable to purchasing Cuban cigars in Cuba and elsewhere.

Labels: Cuba, OFAC, Sanctions

Idaho's newly elected governor, C.L. "Butch" Otter, and his 35 member delegation arrived in Havana, Cuba yesterday for a four-day trade mission. According to press reports, the trade mission includes Governor Otter and his wife; two members of the Idaho Potato Commission; officials from Idaho operations of Swiss seedmaker Syngenta; business professors from Brigham Young University-Idaho in Rexburg; milk company executives; an Idaho Falls health care products maker; Marty Peterson, a University of Idaho official trying to save author Ernest Hemingway's Cuban house; and Elizabeth Murtland, of the Hands of Hope medical mission.

Nebraska Governor Dave Heineman recently returned from a trip to Cuba. During the trip contracts worth approximately $16 million were signed for the purchase of 75,000 tons of Nebraska wheat and pork products.

Labels: Cuba

Today's Tampa Tribune contains several interesting Cuba related articles:

• U.S.-Cuba Relations Could Be Modified - Discusses possible "sanding down of the edges of Cuba sanctions" and provides overview of the current U.S. political climate regarding Cuba.

• Pro-Sanctions Groups Spread Cash - Discusses the influence of the U.S.-Cuba Democracy PAC, which opposes softening of sanctions against the Castro regime, and other political action committees involved in Cuba issues.

• Bills That Affect Cuba Policy - Provides summary of the Cuba-related bills in the current session of the U.S. Congress.

Labels: Cuba, Sanctions

Pursuant to a request made by the Senate Finance Committee, the U.S. International Trade Commission (ITC) has launched an investigation to report on the effects of U.S. trade and travel restrictions with Cuba on U.S. exports of agricultural, fish and forest products to Cuba.

Labels: Cuba, Export Controls, ITC

The Center for Democracy in the Americas and USA*Engage have released a report entitled "In Our National Interest: The Top Ten Reasons for Changing U.S. Policy Towards Cuba". The top ten reasons covered in the report are:

• The policy has produced nothing in decades
• Enforcing the policy drains resources from the war on terror
• The policy hurts American companies and American workers
• The policy is an assault on family values
• The policy infringes on the rights and liberties of all U.S. citizens
• The policy hurts America’s image abroad
• The Castro government uses our policy to advance its own ends
• The policy puts political interests above the national interest
• Important people oppose the policy and want to see it changed
• The policy stops Americans from doing what they do best

Labels: Cuba

In the first civil penalty imposed by the Bureau of Industry and Security (BIS) in 2007, BIS has imposed a $6,000 penalty on El Salvador-based El Salvador Networks, S.A. ("SALNET") for engaging in a prohibited reexport of U.S.-origin equipment and software to Cuba. Specifically, BIS alleged that SALNET reexported U.S.-origin telecommunication hardware and software that was classified as ECCN 5A991 to Cuba without obtaining a reexport license.

BIS controls the export and reexport of U.S. origin goods to Cuba.

Labels: BIS, Cuba, Export Controls