On July 22, 2015, the U.S. Department of Commerce, Bureau of Industry and Security, amended its Export Administration Regulations (EAR) implementing the elimination of the "State Sponsor of Terrorism" designation as applied to Cuba. The amendments also remove "AT" (anti-terrorism) license requirements from Cuba and eliminate references to Cuba as a State Sponsor of Terrorism. However, it is important to note that all preexisting license requirements for items subject to the EAR remain in place, unless authorized by a license exception.
Cuba has also been removed from the group of countries identified in Country Group E:1—Terrorist Supporting Countries. This action has the significant result of raising from 10 percent to 25 percent thede minimis level of U.S. materials that may be incorporated into foreign produced products without, in general, bringing such products within the scope of the EAR. There are specific regulations covering the method of calculation that have to be consulted with respect to the Department of Commerce's de minimis rules. Cuba's State Sponsor of Terrorism designation was rescinded on May 29, 2015.
The amendments became effective on July 22, 2015, as reported in the Federal Register (Vol. 80, No. 140).
It is important to note that Cuba is still subject to a comprehensive embargo, and in accordance with the specific provisions of 15 CFR Part 746.2(a) of the EAR, a license is required to export or reexport to Cuba any item subject to the EAR unless authorized by a license exception.
Part 746.2(a) of the EAR identifies the license exceptions applicable to Cuba. The scope of each exception is provided in specific provisions as follows.
- Temporary exports (TMP) by news media, 740.9(a)(9);
- Operation technology and software (TSU), 740.13(a);
- Sales technology (TSU), 740.13(b);
- Software updates (TSU), 740.13(c);
- Servicing and replacement of parts and equipment (RPL) associated with one-for-one replacement, 740.10(a);
- Baggage (BAG), 740.14;
- Government and international organizations (GOV), 740.11;
- Gift parcels and humanitarian donations (GFT), 740.12;
- Items in transit (TMP) from Canada through the United States, 740.9(b)(1)(iv);
- Aircraft, vessels and spacecraft (AVS) for certain aircraft and temporary sojourns, 740.15(a);
- Additional permissive reexports (APR) of certain spare parts in foreign-made equipment, 740.16(h); and
- Exports of agricultural commodities classified as EAR 99 (AGR) and certain reexports of U.S.-origin agricultural commodities classified as EAR 99, under license exception AGR 740.18;
- Support for the Cuban people (SCP), 740.21; and
- A preexisting licensing exception, Consumer Communications Devices, 740.19, has been expanded to include additional products.