OFAC Sanctions & Licensing

Background on U.S. Sanctions (as of May, 2021)

The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) administers a number of different sanctions programs. The purpose of U.S. sanctions programs is to advance U.S. foreign policy objectives and protect national security. Currently, OFAC administers 35 sanctions programs. These sanctions programs vary widely – some are comprehensive while others are highly selective.

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Building a Strong Export Compliance Plan

Exporting is a Privilege, Not a Right

Over 95% of the world’s consumers are outside of the United States. Opportunities abound for U.S. companies that export. However, exporting is a privilege and not a right. U.S. exporters have an important responsibility to adhere to U.S. export control laws, including the Export Administration Regulations (“EAR”), the International Traffic in Arms Regulations (“ITAR”) the Office of Foreign Assets Control (“OFAC”) sanctions laws, and the Foreign Corrupt Practices Act (“FCPA”). Violations of export control laws carry hefty civil and criminal penalties. Exporters can pay hundreds of thousands of dollars in penalties, lose export privileges, and even be imprisoned for violations of U.S. export control laws.

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Commerce Department Issues Rule Securing Digital Supply Chains Against Foreign Adversaries

Background on Securing Information Technology & Communications Supply Chains

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By |2021-10-12T14:56:04-04:00February 16, 2021|China, China Trade War, Cuba, Export, FCPA, International Trade, IRAN, Supply Chain, U.S. Bureau of Industry and Security (BIS), U.S. Department of Commerce (DOC), U.S. Office of Foreign Assets Control (OFAC), venezuela|Comments Off on Commerce Department Issues Rule Securing Digital Supply Chains Against Foreign Adversaries

Trump Administration Designates Cuba State Sponsor of Terrorism

Cuba Designated a State Sponsor of Terror

The U.S. State Department designated Cuba a State Sponsor of Terrorism (“SST”) on January 11, 2021. Countries are designated on the SST list when they are determined by the U.S. Secretary of State to have repeatedly provided support for acts of international terrorism.

The four main categories of sanctions resulting from designation can include restrictions on U.S. foreign assistance; a ban on defense exports and sales; certain controls over exports of dual use items; and miscellaneous financial and other restrictions. Here, the January 11 re-designation of Cuba on the SST subjects Cuba to:

  • Sanctions that penalize persons and countries engaging in certain trade with Cuba
  • Restricts U.S. foreign assistance to Cuba
  • Bans defense exports and sales to Cuba
  • Imposes certain controls on exports of dual use items.

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By |2021-10-12T15:06:51-04:00January 12, 2021|Cuba, EAR, Export, FCPA, Freight Forwarding, U.S. Bureau of Industry and Security (BIS), U.S. Department of State (DOS), U.S. Office of Foreign Assets Control (OFAC)|Comments Off on Trump Administration Designates Cuba State Sponsor of Terrorism

U.S.-Cuba Trade under Trump vs. Biden

U.S.-Cuba Trade under Trump

Since the early 1960s, the U.S. maintained a policy of economic sanctions towards Cuba. The U.S. policy sought to isolate the Cuban government. In 2014, the Obama administration significantly changed U.S. trade and economic policies towards Cuba by restoring diplomatic relations, rescinding Cuba’s designation as a state sponsor of terror, and permitting increased trade between the two countries. This period was known as the Cuban Thaw.

However, under President Trump’s administration, the Obama administration’s efforts to normalize relations have been rolled back. In November 2017, the Trump administration restricted financial transactions with entities controlled by the Cuban government. Furthermore, many new entities have been added to the Cuba restricted list under the Trump administration. As of 2019, the Trump administration has more or less abandoned engagement with the Cuban government, and has opted instead to increase sanctions based on Cuba’s human rights violations and its support of the Venezuelan government under Nicolas Maduro.

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By |2021-10-12T15:17:14-04:00December 21, 2020|Cuba, Customs Expert, Election 2020, Export, Import, International Business, International Law, International Trade, U.S. Office of Foreign Assets Control (OFAC)|Comments Off on U.S.-Cuba Trade under Trump vs. Biden

UPDATE: Non-Commercial Airplanes and Cruise Ships on Temporary Sojourn are Now Prohibited To Travel To Cuba.

cuba - prohibtFollowing President Obama’s historical break in precedent, easing restrictions on Cuba in 2016, President Trump now seeks to deprive the Communist regime of revenue from American citizens.

President Trump, not wanting the US to be complicit in the oppression and subjugation of Cubans, has decided to roll back the newly established relationship and directed the Bureau of Industry and Security (BIS) to draft a final rule limiting the types of aircraft that are authorized to fly to Cuba and the types of vessels that are authorized to sail to Cuba on temporary sojourn. This change is likely to be a result of the exponential growth of the island’s economy, coupled with the lack of improvement in overall quality of life for its citizens.

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Trump Administration Tightens Cuba’s Sanctions Program 

Since June 2017, we have been anxiously awaiting changes to the Cuba sanctions program since President Trump signed an executive order and emphatically stated that his administration would tighten loose regulations established under the Obama Administration.

On November 8, 2017, the U.S. Department of the Treasury stated,

  • “We have strengthened our Cuba policies to channel economic activity away from the Cuban military and to encourage the government to move toward greater political and economic freedom for the Cuban people”

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Top Successes of Diaz Trade Law (DTL) & Diaz Trade Consulting (DTC) in 2016!

DTL saved clients MILLIONS of dollars in 2016, below we list a summary of some of our compliance successes!

U.S. Customs & Border Protection (CBP)

  • Assisted an importer in having $434,486.00 worth of goods seized returned to it in a RECORD 24 working days, with a signed settlement agreement with CBP in a record 17 working days!
  • Assisted an importer in having $324,466.00 worth of goods seized for an underlying AES violation returned.
  •  Assisted importers in filing prior disclosures that were accepted by CBP, advising of errors found, and avoiding substantial penalties.
  •  Assisted importers in successfully responding to CBP 28’s and 29’s resulting in close outs, and no further enforcement action by CBP!
  •  Assisted importers in creating and maintaining pre-compliance programs to evaluate intellectual property rights and pre-report merchandise to CBP resulting in expedited entry into the U.S. with no delays or examinations by CBP.

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By |2021-11-09T13:53:53-05:00January 26, 2017|Best Practices, Cosmetics, Cuba, Events, Export, Import, IPR, Trademarks and Logos, Seizures, Speaking, U.S. Bureau of Industry and Security (BIS), U.S. Customs and Border Protection (CBP), U.S. Food and Drug Administration (FDA)|Comments Off on Top Successes of Diaz Trade Law (DTL) & Diaz Trade Consulting (DTC) in 2016!

Catch up on DTL’s TOP Blogs from 2016!

We want to make sure you stay up to date with the hottest trade topics from 2016. Below is a summary of what you missed by category. Enjoy!

CBP

  1. Why Pre-Compliance is a Must
  2. Ongoing Hoverboard Concerns
  3. Yet Another Reason to Record your Trademark or Copyright with U.S. Customs and Border Protection (CBP)
  4. U.S. Customs – Your Personal Policeman at the Border
  5. Learn About “The ABC’s of Customs Seizures – Plus Top 10 Tips to Ensure Import Compliance” From the Expert!
  6. ISF Penalties Have Officially Arrived: Self File and Self Police

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By |2021-11-09T14:03:03-05:00January 26, 2017|AD/CVD, Cuba, U.S. Customs and Border Protection (CBP), U.S. Food and Drug Administration (FDA)|Comments Off on Catch up on DTL’s TOP Blogs from 2016!

Travel to the U.S. with an Unlimited Number of Cuban Cigars and Rum – Courtesy of New Revised OFAC and BIS Regulations

On October 14, 2016, President Obama issued a Presidential Policy Directive on United States-Cuba Normalization to further ease travel and trade restrictions with Cuba. As a result, Monday, October 17, 2016, amendments to both OFAC and BIS regulations will take effect.

Below are the top changes from both OFAC and BIS:

OFAC is making additional amendments to the Regulations with respect to health, trade and commerce, civil aviation safety, travel and related transactions, humanitarian-related activities, and certain other activities. Below is a recap:

  • Health
    • Persons subject to U.S. jurisdiction are now permitted to engage in commercial and non-commercial joint medical research projects with Cuban nationals. (Section 515.547).
  • Travel and Related Transactions
    • Importation of Cuban merchandise: Not too long ago we alerted our readers that CBP was targeting Cuban Cigars at American Ports. We haveImage result for travel with cigars and rumBIG news for cigar and rum lovers… As of Monday, October 17, 2016, persons subject to U.S. jurisdiction are now able to return home from Cuba (or any other country where Cuban rum and cigars can legally be purchased) with an unlimited amount of rum and cigars. However, the number of cigars and amount rum must be for personal use and such merchandise must be imported as accompanied baggage and are subject to the normal limits on duty and tax exemptions. This is a huge step forward from OFAC’s initial limit of $400 or less (with no more than $100 of such merchandise […]
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