Cuban Embargo
Harris Saunders
Cigars & More Trussville
I get quite a few questions regularly about the Cuban trade embargo. I thought you guys would find this interesting. This is a copy of the official latest update on the embargo and what it covers.
Harris
CUBAN CIGAR UPDATE
Recent changes to the Cuban Assets Control Regulations, 31
C.F.R. Part 515 (the “Regulations”), administered and
enforced by the Office of Foreign Assets Control (“OFAC”),
have prompted OFAC to revise the Cuban Cigar Update
previously issued on June 19, 1998. This notice provides
important information to the public on Cuban-origin tobacco
products.
Importation of Cuban-Origin Cigars Into the United States
There is now an across the board ban on the importation
into the United States of Cuban-origin cigars and other
Cuban-origin tobacco products, as well as most other
products of Cuban origin. This prohibition extends to such
products acquired in Cuba, irrespective of whether a
traveler is licensed by OFAC to engage in Cuba travel related
transactions, and to such products acquired in
third countries by any U.S. traveler, including purchases
at duty free shops. Importation of these Cuban goods is
prohibited whether the goods are purchased directly by the
importer or given to the importer as a gift. Similarly,
the import ban extends to Cuban-origin tobacco products
offered for sale over the Internet or through the catalog
mail purchases. Prior to August 1, 2004, persons returning
to the United States who were licensed under the
Regulations to engage in Cuba travel-related transactions
were authorized by general license to import up to $100
worth of Cuban merchandise as accompanied baggage. Cuban
tobacco and alcohol products were included in that general
license. That general license was removed from the
Regulations.
Transactions Involving Cuban-Origin Goods in Third
Countries
The question is often asked whether United States citizens
or permanent resident aliens of the United States may
legally purchase Cuban origin goods, including tobacco and
alcohol products, in a third country for personal use
outside the United States. The answer is no. The
Regulations prohibit persons subject to the jurisdiction of
the United States from purchasing, transporting, importing,
or otherwise dealing in or engaging in any transactions
with respect to any merchandise outside the United States
if such merchandise (1) is of Cuban origin; or (2) is or
2
has been located in or transported from or through Cuba; or
(3) is made or derived in whole or in part of any article
which is the growth, produce or manufacture of Cuba. Thus,
in the case of cigars, the prohibition extends to cigars
manufactured in Cuba and sold in a third country and to
cigars manufactured in a third country from tobacco grown
in Cuba.
Cigars Produced from Cuban Tobacco Seed OFAC does not
consider cigars produced from tobacco grown and harvested
in a third country from Cuban seeds to constitute a growth
or product of Cuba. Therefore, the Regulations do not
prevent transactions or dealing in those products by
persons subject to the jurisdiction of the United States,
as long as there is no interest of Cuba or a Cuban
national, direct or indirect, in the sale of such cigars.
Criminal penalties for violation of the Regulations range
up to $1,000,000 in fines for corporations, $250,000 for
individuals and up to 10 years in prison. Civil penalties
of up to $65,000 per violation may be imposed by OFAC.
Suspected embargo violations may be reported telephonically
to OFAC's Enforcement Division at (202)622-2430 or via
facsimile at 202 622-1657.
Date 09/30/2004