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Cuba Travel LandscapeNew Opportunities and Legal Impediments

Daniel R. Zim, Esq.IFTTA North American SectionFourth Annual ConferenceMarch 13, 2015

Photo credit: Jaume Escofit

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The Announcement

- Breakthrough moment - most significant development in US-Cuba relations since Kennedy administration.- Diplomatic recognition of Cuba- 55 year US policy of regime change is over

Official White House Photo

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Authorized Travel to CubaExisting travel categories authorized by OFAC under general licenses include: (1) family visits; (2) official governmental business; (3) journalistic activities; (4) professional research and meetings; (5) educational activities; (6) religious activities; (7) public performances, clinics, workshops, athletic and other competitions and

exhibits; (8) support for the Cuban people; (9) humanitarian projects; (10) activities of private foundations or research or educational institutes; (11) export, import or transmission of information or informational materials; and (12) certain export transactions.

The regulations contain certain restrictions appropriate to each category listed above.

Prohibition on travel for tourist activities continues. Cuba requires visas for many categories of travel.

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Authorized transactions incident to travel

Credit and debit cards - OFAC authorized U.S. financial institutions to enroll merchants in Cuba and process credit and debit card transactions for travel-related and other transactions.

Per diem limitation on authorized spending in Cuba eliminated. Travel import allowances - U.S. travelers to Cuba can import

up to $400 worth of goods acquired in Cuba for personal use. This amount cannot include more than $100 of alcohol or tobacco products.

Insurance carriers may provide coverage to travelers in Cuba.

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General license for travel agents and airlines to provide travel and air carrier services.

People-to-people tours remain heavily regulated, despite general license.

Travel Service Providers

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Cuban Democracy Act of 1992(Torricelli Bill)

Prohibits foreign-based subsidiaries of U.S. companies from trading with Cuba.

Any vessel which has traded goods or services with Cuba cannot within 180 days dock at a U.S. port, except that the President may specifically license such transportation on a case by case basis*

* 2015 Regulatory Changes - An exception has now been created for ships

that have engaged in humanitarian or other authorized trade with Cuba. Ferry service permitted under special license.

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Cuban Liberty and Democratic Solidarity (Libertad) Act of 1996 

(Helms-Burton Act)

Embargo previously a set of Executive Orders, giving President discretion to shape and transform the embargo as he saw fit.

Strengthened and codified the economic embargo of Cuba eliminating presidential discretion to terminate sanctions. (Titles I & II of the Helms-Burton Act)

Extra-territorial application of embargo - foreign companies

penalized for allegedly "trafficking" in property formerly owned by U.S. citizens but confiscated by Cuba after the Cuban Revolution.  (Titles III & IV of Helms-Burton Act)

Official U.S Govt. Photos

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Conditions for Lifting Embargo Under Helms-Burton

President only permitted to “take steps to suspend the economic embargo” if a transitional government  receives official recognition from Congress. (Sec. 204.e.2 of Helms-Burton)

Criterion to determine whether a transitional government is in effect include: (1) releasing all political prisoners, (2) dissolving the Cuban Department of State Security, (3) taking “appropriate” steps to return assets to U.S. citizens that  the Cuban government

confiscated after January 1, 1959, and (4) government led by someone other than Raul or Fidel Castro.

Upon suspension of the embargo President must:(1) immediately so notify the Congress; and (2) report to the Congress no less frequently than every 6 months thereafter, until he submits a

determination… that a democratically elected government in Cuba is in power, on the progress being made by Cuba toward the establishment of such a democratically elected government.

The action of the President… shall cease to be effective upon the enactment of a joint resolution.[

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Trade Sanctions Reform and Export Enhancement Act of 2000

Compromise billAllowed US exports of food and medicine

to CubaRestricted travel licenses to 12 categories

of purposeful travelProhibited tourist travel to Cuba

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Florida Restrictions on Travel

None of the state or nonstate funds made available to state universities may be used to implement, organize, direct, coordinate, or administer, or to support the implementation, organization, direction, coordination, or administration of, activities related to or involving travel to a terrorist state. For purposes of this section, “terrorist state” is defined as any state, country, or nation designated by the United States Department of State as a state sponsor of terrorism.

Fla. Stat. Ann. § 1011.90(6)