Commerce removes Cuba from terrorism sponsor list

The U.S. Commerce Department’s Bureau of Industry and Security on Tuesday implemented the State Department secretary’s removal of Cuba from its list of state sponsors of terrorism.    The U.S. Commerce Department’s Bureau of Industry and Security on Tuesday implemented the State Department secretary’s removal of Cuba from the list of state sponsors of terrorism.
   The move was in response to the recent actions taken by the Obama administration to reestablish diplomatic relations with Cuba.
   The Commerce regulatory revisions, which are published in the Federal Register, eliminate references in the Export Administration Regulations (EAR) to Cuba as a “state sponsor” of terrorism.
   Commerce Secretary Penny Pritzker, during remarks at an industry forum in Tampa, Fla. this week, further clarified the Commerce Department’s role in reestablishing economic ties with Cuba, pointing out that the department will facilitate more travel to the island nation and open more doors to trade.
   “Here is the bottom line,” Pritzker explained, “we need these new trade agreements, or our businesses and the workers they employ risk being left behind. Our new policy allows American firms to increase exports of goods like agricultural products, medicines and medical devices, and building materials to an untapped market.”
   Changes resulting from the removal of the “state sponsor of terrorism” designation include permitting the re-export to Cuba of foreign-made products with up to 25 percent U.S.-origin content (up from the current level of 10 percent) and generally allowing exports of replacement parts for items legally exported to Cuba.  
   In addition, general aviation, such as corporate jets, may now use license exceptions for trips to Cuba. Commerce’s license exceptions allow for exports or re-exports under certain conditions that would otherwise require a license under EAR. Previously, only charter flights were considered for this license exception. In line with the embargo on trade with Cuba, however, a license is still required to export or re-export to Cuba any item subject to EAR unless a license exception is available, the Commerce Department said.