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BIS removes Cuba as a state sponsor of terrorism in its regulations

Posted on by darion

On July 22, 2015, the Bureau of Industry and Security (BIS), an agency of the U.S. Department of Commerce, amended the Export Administration Regulations (EAR) to include the removal of Cuba from the list of state sponsors of terrorism. The Secretary of State rescinded Cuba’s nomination on May 29, 2015.

As part of the removal of Cuba from designation as a state sponsor of terrorism, BIS amended the EAR to remove textual references linking Cuba to terrorism. It also removes anti-terrorism (AT) license requirements for Cuba. Finally, BIS amended the EAR to remove Cuba from the E:1 country group, although Cuba remains on the E:2 country list.

These changes to the EAR affect certain licensing requirements and exceptions applicable to exports to Cuba. Specifically, the EAR applies to items containing more than de minimis content originating in the United States. For exports to most countries, the de minimis amount is 25 percent, while for exports to countries on the E:1 Country Group list, the de minimis amount is 10 percent. Exports of most products to Cuba are also currently subject to the 25 percent de minimis rule. However, foreign-manufactured products destined for Cuba that contain certain US-sourced 600 Series content remain subject to the EAR, regardless of the level of US-sourced content.

In addition, the removal of Cuba from the Country Group E:1 list makes exports to the country eligible for four new licensing exceptions, including:

  • Handling license exceptions and replacement parts and equipment (RPL);
  • License Exception Governments, international organizations, international inspections under the Chemical Weapons Convention and the International Space Station (GOV);
  • Baggage subject to license exception (BAG); AND
  • License Exception Aircraft, Vessels and Spacecraft (AVS).

Despite these changes, it should be remembered that Cuba is still subject to a comprehensive embargo. Licenses are still required to export or re-export to Cuba any item subject to the EAR unless permitted by a license exception. Those who would like to export products permitted under the license exceptions may only use the license exceptions listed in 15 CFR 746.2(a).