Yesterday the U.S. Department of State published new additions to both the Cuba Prohibited Accommodations List (CPA List) and the Cuba Restricted List (CRL). These additions come two weeks after President Trump issued the National Security Presidential Memorandum on Strengthening the Policy of the United States Toward Cuba (NSPM-5), announcing the administration’s intention to strengthen current U.S. restrictions on Cuba. These additions to the CPA List and CRL represent the initial stage in implementing NSPM-5, with further measures from the Department of Commerce and Department of the Treasury anticipated in the next two weeks.
NSPM-5 provides an overview of administration’s policy toward Cuba, with a primary focus on ending “economic practices that disproportionately benefit the Cuban government, military, intelligence, or security agencies at the expense of the Cuban people.” It further directs the Secretary of State, in coordination with the Secretary of the Treasury, to initiate a process to “adjust current regulations regarding transactions with Cuba.”
The accompanying White House fact sheet indicates that these “adjustments” will be a return to the “robust Cuba policy” from President Trump’s first term, with the goal to reverse any policies that may have eased pressure on Cuba. The additional objectives of NSPM-5 include:
- Prohibiting direct or indirect financial transactions with entities controlled by the Cuban military;
- Enforcing the statutory ban on U.S. tourism to Cuba;
- Opposing calls by international organizations such as the United Nations for termination of the economic embargo of Cuba;
- Increasing efforts to support the Cuban people through “the expansion of internet services, free press, free enterprise, free association, and lawful travel”;
- No reinstitution of the “Wet Foot, Dry Foot” policy, last in effect in 2017, to discourage “dangerous, unlawful migration”;
- Ensuring engagement between the United States and Cuba to advance the interests of both the United States and the Cuban people including the promotion of human rights and support for a Cuban private sector free of government control; and
- Mandating a review of human rights abuses in Cuba and a report on fugitives from the United States living in Cuba or being harbored by the Cuban government.
The points outlined above are likely to be the basis to reverse or revise existing measures in place against Cuba. NSPM-5 sets a deadline of July 30 for Treasury, Commerce, State, and the Department of Transportation to “initiate a process to adjust current regulations regarding transactions with Cuba.” Most significantly, this could result in changes to the Export Administration Regulations administered by Commerce’s Bureau of Industry and Security (BIS), as well as the Cuban Assets Control Regulations administered by Treasury’s Office of Foreign Assets Control (OFAC).
Cassidy Levy Kent’s attorneys, compliance professionals, economists, and licensed customs brokers assist clients navigating export controls and sanctions issues. We expect further developments in this space and will continue to provide updates. Please contact us with any questions.