Vermont Bar Journal, Vol. 40, No. 2 Spring 2015, Vol. 41, No. 1 | Page 25

Trade In addition to broad based changes that allow for significantly increased travel to Cuba, President Obama’s new regulations also provide strengthened opportunities for individuals and businesses to engage in productive trade with Cuba. Pursuant to Treasury and Commerce Department rules, trade delegations are authorized to Cuba if each member of the delegation meets the criteria of an applicable travel category. In addition, persons subject to U.S. jurisdiction and who travel legally pursuant to the regulations may import merchandise acquired in Cuba with value not to exceed $400 per person, including no more than $100 in alcohol and tobacco products.11 Above and beyond personal importation of a few Cuban cigars, the new regulations will have a large impact on U.S. business dealings with Cuba and Cuban businesses. According to the new rules, United States companies may now export telephones, computers, and Internet technology to Cuba. In addition the Commerce Department’s Export Administration Regulations (EAR) loosen many of the restrictions on exports to Cuba. Individual or business entities no longer need to acquire an export license to export goods that “support” the Cuban people.12 This includes goods such as building materials, equipment and tools for use by the private sector or agriculture, medical devices, medicines, items for use in scientific, archaeological, sporting, and educational activities. There is also an exception for licensing to export agricultural commodities to Cuba. Agricultural products - such as food stuffs like apples, powdered milk, feed, fish, beer, wine, spirits, livestock, wood, seed, fertilizer, bottled water, and vitamins and minerals - no longer require licensing prior to export.13 In addition to expanded exceptions to the export licensing requirements, the new rules also allow banks to operate in Cuba. This means Mastercard, American Express, Visa, and others will soon be able to process payments in Cuba linked to United States banks. Insurance companies may also now engage in Cuba-related transactions. opening of embassies, and increased travel and trade all bode well for a future where the United States and Cuba can move forward in a productive and mature manner. However, the changes underway will fail unless they are based on mutual respect for each other and, at the government level, respect for each nation’s sovereignty. Given the fact that at least three potential presidential candidates have voiced opposition to these changes, there is also the risk that they could be reversed when a new administration comes to power after the 2016 election.14 In the meantime, individuals and businesses looking to engage in Cuba have a unique opportunity. However, individual and businesses must be cognizant of the new regulatory framework so as to maintain full compliance with the law. This includes careful review of the licensing and banking requirements as well as the appropriate sanction and sanction exclusion clauses of any insurance policies that address Cuba-related transactions.15 Because of Vermont’s long history of engagement on the island, Vermonters are uniquely positioned to become part of the change that is underway. As we usually do, Vermonters are having an outsized impact on the future of U.S./Cuba relations. Let’s keep the ball rolling. ____________________ Jared K. Carter, Esq., is a practicing Vermont attorney and a faculty member at Vermont Law School. He also leads trips and delegations to Cuba. The Cuban Democracy Act, 22 U.S.C. 6001. 31 C.F.R. 515.565 (as amended Jan. 17, 2015). 5 31 C.F.R. 515.565(b) (as amended Jan. 17, 2015). 6 Id. 7 www.cubanamericanfs.org. 8 31 C.F.R. 515.564 (as amended Jan. 17, 2015). 9 The Cuban Government recently opened up opportunities for Cuban citizens to start and grow small-scale, private businesses in more than 350 business categories. 10 31 C.F.R. 515.575 (as amended Jan. 17, 2015). 11 Frequently Asked Question, United States Treasury Department Guidelines on the Cuban Assets Control Regulations (at http://www.treasury.gov/resource-center/sanctions/Programs/ Documents/cuba_faqs_new.pdf). 12 15 C.F.R. 740.21. 13 15 C.F.R. 772.1. 14 Presidential candidates Jeb Bush, Marco Rubio, and Ted Cruz have all stated that they oppose the changes and the normalization of relations between the United States and Cuba. 15 This legal history and update should not be construed as legal advice or opinion, and is not a substitute for the advice of an attorney. 3 4 Wanna Go To Cuba? to travel to Cuba to build tennis courts or skate-parks for inner-city Cuban youth to learn about these sports. Under this category of travel, such activities would be permitted. This category of legal travel has the potential to create many new ways for people from the United States to engage with people in Cuba. ____________________ 1 Helms-Burton Act, 22 U.S.C. 6012 – 6091. 2 Immigration and Naturalization Service v. Chadha, 462 U.S. 919 (1983). Conclusion After more than fifty-five years, it does look as though a rapprochement is in progress. The normalization of relations, the www.vtbar.org THE VERMONT BAR JOURNAL • SPRING 2015 25