The Club has received an increased number of inquiries in relation to the easing of US sanctions that took place on 16 January 2015. The position can be summarized as follows:
The US embargo against Cuba is essentially still in place but several travel and export restrictions for US persons have been lifted. For instance, US companies are allowed to export telephones, computers, and Internet technology to Cuba and to send supplies to private Cuban firms.
The new regulations make significant changes for shipping. Specifically, they create the following exceptions to the “180-day rule” which bars vessels from the U.S. for 180 days after calling Cuba to engage in the trade of goods or the purchase or provision of services:
- shipment of cargoes exported under Commerce Department authorization (including agricultural, medical, telecommunications, and other permitted goods);
- carriage of students, faculty, and staff that are authorized to travel to Cuba; and
- vessels engaged in the exportation or re-exportation to Cuba from a third country of most agricultural commodities, medicine, or medical devices.
With regard to cruise and ferry services, the new regulations do not provide a general license to allow the carriage of passengers by sea between the U.S. and Cuba. However, the new regulations do allow for individual, specific licenses to be granted by OFAC for vessel services.
The new regulations still do not allow vessels to depart the U.S. for Cuba without an export license. Accordingly, to operate passenger services to Cuba, it appears that an individual license must be obtained from OFAC and an export license for the vessel itself will have to be obtained from the US Commerce Department, at least until the US State Department completes its process to remove Cuba from the list of state sponsors of terrorism.
It seems that further easing of sanctions will require Congressional action which, according to sources, is not expected within the near future.
Member Alert is published by The Swedish Club as a service to members. While the information is believed correct, the Club cannot assume responsibility for completeness or accuracy.