Cuba - Travel Restrictions

June 6, 2003

Travel-Related Transactions Involving Cuba
On April 29, 2003, the Treasury Department’s Office of Foreign Assets Control (OFAC) issued new Comprehensive Guidelines for License Applications to Engage in Travel-Related Transactions Involving Cuba (Guidelines). OFAC issued the Guidelines to facilitate understanding of and compliance with regulations regarding Cuban travel-related transactions (31 C.F.R. pt. 515), which were recently revised as a result of the Trade Sanctions Reform and Export Enhancement Act of 2000. The complete guidelines can be accessed on OFAC’s web page. The following is a somewhat expanded assessment of those travel guidelines for those companies that may have an interest.

As background, a bipartisan group of Senators and House Members has recently proposed legislation to end the Cuba travel ban (H.R. 2071, 108th Cong. (2003); S. 930, 108th Cong. (2003)). Despite that effort, the Bush Administration has announced its intention to tighten the restrictions, and neither the Senate nor the House has taken significant action on the proposed legislation thus far. Thus, the Guidelines reflect the most comprehensive and current description of regulations concerning transactions relating to travel involving Cuba.

Although the Guidelines broadly prohibit travel-related transactions involving Cuba by persons subject to United States jurisdiction, individuals and organizations may engage in such transactions if they obtain a general or specific license from OFAC.

A general or specific license authorizes the holder to pay for transportation to and from Cuba, although travel fees that may be paid to the Cuban government are limited. Direct travel from the US must be aboard charter flights from New York City, Miami, or Los Angeles. While in Cuba, the licensee may spend up to the US government traveler per diem rate for Havana (currently $158) and may purchase and import into the US no more than $100 worth of personal use merchandise. An authorized traveler must make travel arrangements for travel to Cuba either through an OFAC-approved provider or a third-country provider not subject to US jurisdiction. For a list of approved providers, click here.

There are five types of general licenses, two of which may apply to business organizations (the professional research or meeting license and the journalism license). There are an additional eleven types of specific licenses, which travelers must obtain from OFAC prior to undertaking transactions relating to travel to Cuba. Among the specific licenses only three are likely to apply to business organizations: the licenses for travel related to licensed exports, for the provision of telecommunications and exportation/importation of informational materials, and for professional research or meetings not eligible for a general license. The following provides a description first of each present possible general license and then each present possible specific license for transactions relating to travel to Cuba under the current Guidelines.

A. General License to Engage in Travel-Related Activities Involving Cuba
A party traveling under a general license need not obtain prior approval of the travel transaction by OFAC. However, the party is obligated to maintain records demonstrating compliance with the terms of the license during the course of the transaction.

The general licensing scheme allows travel-related transactions involving Cuba for the following five categories of activities:

Professional research or conference travel transactions are allowed subject to the following restrictions:

Conference attendance must be full-time and related to the individual’s professional area. The conference must be organized by a specifically licensed US organization or an international entity that regularly sponsors meetings or conferences in countries other than the US. The purpose of the conference or meeting may not be to foster production of biotechnology products or to promote Cuban tourism or commercial activity.
Full-time academic research must be specific to Cuba and with a substantial likelihood of public dissemination.

Travel related to journalistic activities by journalists and supporting broadcast or technical personnel regularly employed by a news organization in Cuba are licensed. Free-lance journalists must apply for a specific license.
Official business travel by US government officials, foreign government officials, and officials of international organizations of which the US is a member is licensed.
One visit to Cuban-national close relatives during a twelve-month period is authorized. OFAC will consider specific license applications for further visits.
Travel by certain amateur or semi-professional athletic teams is licensed.

B. Specific Licenses to Engage in Travel-Related Activities Involving Cuba
A person subject to US jurisdiction and not eligible for a general license may apply for a more narrow, specific license from OFAC. Specific licenses may be extended or renewed. However, if the original specific license was issued prior to April 29, 2003, the licensee must reapply for a new specific license under the terms of the new Guidelines.

Specific licenses may be authorized in the following circumstances:

Travel related to licensed exportations/re-exportations:
- Exports from the United States and 100% US-origin items from foreign entities: Licenses are possible for two types of travel transactions relating to the exportation of goods from the US: (1) certain travel with a full-time work schedule directly related to humanitarian donations approved by the Department of Commerce, and (2) certain travel with a full-time work schedule directly related to commercial re-exportation separately authorized by the Department of Commerce.
- Exports from US-owned or controlled foreign firms: Licenses may be requested for travel transactions related to the marketing, sales negotiation, accompanied delivery, or servicing of authorized exportations to Cuba by foreign subsidiaries of US parent corporations. The foreign subsidiary must be generally independent of its US parent and operate in a country that requires or favors trade with Cuba. The exports must involve non-restricted medicine or medical supplies, telecommunications equipment necessary for US-Cuba telecommunications, or relate to contracts executed prior to October 23, 1992. Finally, neither employees of the US-based parent firm nor any other person within the United States may have any role in the negotiation or in the performance of the transaction that is the subject of the license application.
Provision of telecommunications and exportation/importation of information and informational materials: Licenses may be authorized for qualified individuals or for an organization for transactions relating to travel directly incident to the exportation or importation of certain informational materials (such as books, films, CDs, etc.). Licenses may also be authorized for travel relating to the provision of telecommunications services between Cuba and the US or third countries by organizations licensed by the FCC.
Professional research and meetings: A professional ineligible for a general license for professional research or meetings may be authorized if the proposed research is Cuba-specific or the proposed meeting or conference in Cuba is sponsored by an organization that is neither subject to US jurisdiction nor holds a specific US license to sponsor the meeting or conference. No license will be granted to allow a professional to attend a Cuban government-sponsored meeting that could be intended to foster the production of biotechnology products. Specific licenses may be authorized on an organizational basis, but the professional qualifications of each individual traveling must relate directly to the Cuban research or meeting. A US organization may be authorized to sponsor a conference if it can show that the conference must be held in Cuba.
Travel related to information collection in Cuba for non-commercial international relations projects undertaken by private foundations and educational and research institutes with an established interest in international relations.
Travel related to specifically-identified work to be undertaken by an experienced free-lance journalist.
Travel related to the facilitation of certain academic activities by institutions or individuals.
Travel related to participation in religious activities, including attending services, restoring religious sites, and financial donations or other fund transfers incident to religious activities.
Travel related to participation in certain public performances, clinics, workshops, competitions, and exhibitions.
Travel related to the provision of support and aid for the Cuban people, including activities of recognized human rights organizations and organizations designed to promote democracy in Cuba.
Travel related to humanitarian projects for the benefit of the Cuban people. Humanitarian projects are not specifically defined, but may include medical, water conservation, environmental, certain types of educational training, and other projects.
Travel for visits to Cuban national relatives more than once in a twelve-month period.

OFAC has the power to revoke or modify licenses for violations of the licensing scheme, and violations can also result in a prison sentence of up to ten years, corporate fines up to $1,000,000, and individual fines up to $250,000, as well as civil penalties up to $55,000 per violation.

If you have any questions, please feel free to contact Ed Krauland at 202.429.8083 or Meredith Rathbone at 202.429.6437.