On 21 July 2015, the US Commerce Department’s Bureau of Industry and Security (“BIS”) announced that it was amending its Export Administration Regulations (“EAR”) by removing Cuba from Country Group E:1 (“Terrorist Supporting Countries”). This change implements the US State Department’s rescission of the designation of Cuba as a state sponsor of terrorism. BIS also has published guidance and a set of Frequently Asked Questions on the change.
Most significantly, the removal of Cuba from the list of terrorist supporting countries authorises the re-exportation to Cuba of most foreign-made products with up to 25% US-origin content (increased from 10%). It also authorises the exportation from the US of replacement parts for items that previously were legally exported to Cuba, the temporary sojourn of aircraft in Cuba, and the exportation of certain encryption-related software and goods in travellers’ baggage. Cuba, however, remains in Country Group E:2 (“Unilateral Embargo”), and a Commerce Department licence will still be required to export or re-export to Cuba most items subject to the EAR, as the comprehensive embargo on trade with Cuba has not been lifted